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Forex - GBP/USD remains lower after UoM report

By: Investing.com
Posted: 7/14/2013 2:19:00 PM
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Investing.com - The pound remained lower against the U.S. dollar on Friday, after the release of disappointing U.S. consumer sentiment data, although Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to weigh on the greenback.

GBP/USD hit 1.5189 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5109, shedding 0.49%.

Cable was likely to find support at 1.5028, the low of July 3 and resistance at 1.5283, the high of July 4.

In a preliminary report, the University of Michigan said its index of consumer sentiment fell to 83.9 in July, from a reading of 84.1 the previous month, confounding expectations for a rise to 85.0.

Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, more than the expected 0.5% gain, after 0.5% increase the previous month.

Core producer price inflation, which excludes food and energy, rose 0.2% last month, compared to expectations for a 0.1% increase, after a 0.1% rise in May.

On Wednesday, Bernanke said the central bank will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank's June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

Sterling was steady against the euro with EUR/GBP inching up 0.04%, to hit 0.8627.

The euro remained under pressure after official data showed that industrial production in the euro zone fell 0.3% in May, exceeding expectations for a 0.2% downtick, after a 0.5% increase the previous month.


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