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Forex - GBP/USD edges higher but gains capped

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Shutterstock photo - The pound edged higher against the U.S. dollar on Tuesday, after the release of mixed U.S. economic reports, although global growth concerns persisted after the comments by the International Monetary Fund.

GBP/USD hit 1.5330 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5308, adding 0.15%.

Cable was likely to find support at 1.5199, the low of April 5 and resistance at 1.5410, the high of April 12.

In the U.S., the Census Bureau said building permits rose by 0.902 million in March, less than the expected 0.940 million increase, after a 0.968 million rise the previous month.

The report added that housing starts in the U.S. rose by 1.036 million units last month, beating expectations for an increase of 0.930 million, after a 0.986 million rise in February.

Separately, official data showed that core CPI in the U.S. rose 0.1% in March, disappointing expectations for a 0.2% increase, after a 0.2% rise the previous month.

CPI, including food and energy, fell 0.2% last month after a 0.7% rise in February, compared to expectations for a 0.1% gain.

In addition, the Federal Reserve said industrial production in the U.S. rose 0.4% in March, beating expectations for a 0.2% gain, after a 1.1% increase the previous month.

Meanwhile, investors remained cautious after the IMF cut its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5%. It also trimmed its 2014 forecast to 4.0% from 4.1%.

Sterling was lower against the euro with EUR/GBP climbing 0.57%, to hit 0.8578.

Also Tuesday, official data showed that U.K. consumer price inflation remained unchanged at an annualized rate of 2.8% in March, in line with expectations.

A separate report showed that producer price inflation input fell 0.1% last month, less than the expected 0.2% decline, after a 2.8% increase.

Retail price inflation rose to an annualized rate of 3.3% in March from 3.2% the previous month, in line with expectations. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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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.

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