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Forex - GBP/USD edges higher despite U.K. public sector borrowing data

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Investing.com -

Investing.com - The pound edged higher against the U.S. dollar on Tuesday, even after data showed that public sector net borrowing rose more-than-expected last month as demand for the greenback slightly weakened ahead of a U.S. economic growth report due later in the day.

Trading volumes were expected to remain limited ahead of the Christmas Holiday.

GBP/USD hit 1.4930 during European morning trade, the session high; the pair subsequently consolidated at 1.4893, easing up 0.09%.

Cable was likely to find support at 1.4861, the low of December 17 and resistance at 1.5003, the high of December 17.

The U.K. Office for National Statistics reported that public sector net borrowing rose to £13.56 billion in November from £6.75 billion in October, whose figure was revised from a previously estimated £7.47 billion.

Analysts had expected public sector net borrowing to rise to £11.00 billion last month.

The dollar mildly weakened ahead of a final report on U.S. third-quarter growth, due later Tuesday.

But the greenback still remained supported after the Federal Reserve hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move. It was the first rise in U.S. interest rates in nearly 10 years.

Sterling was lower against the euro, with EUR/GBP adding 0.10% to 0.7340.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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