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Forex - GBP/USD edges higher, but upside seen limited

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Investing.com - The pound edged higher against the U.S. dollar on Thursday, but gains were limited as ongoing concerns over the outlook for economic growth in the U.K. continued to weigh on demand for sterling.

GBP/USD hit 1.4957 during European morning trade, the session high; the pair subsequently consolidated at 1.4933, edging up 0.07%.

Cable was likely to find support at 1.4866, the low of March 11 and resistance at 1.5047, the high of March 8.

Sterling remained under pressure after official data on Tuesday showed that U.K. manufacturing and industrial output slumped in January.

The unexpectedly weak data, together with recent poor data on construction and manufacturing reinforced concerns over the possibility of a triple-dip recession and fuelled speculation that the Bank of England will restart its asset purchase program.

Meanwhile, Wednesday's positive U.S. retail sales data added to optimism that the country's recovery is gaining traction after data last week showed that the economy added more jobs than expected in February, bringing the unemployment rate to a four-year low of 7.7%.

The pound was higher against the euro with EUR/GBP slipping 0.14%, to hit 0.8673.

Sentiment on the euro remained vulnerable after Italy on Wednesday saw the yield on three-year bonds rise to the highest level since December at the first auction of the country's debt since a one-notch downgrade by Fitch's ratings agency last week in the wake of inconclusive elections.

Later in the day, European Union leaders were to hold the first day of a two day economic summit.

The U.S. was to release government data on producer price inflation and the weekly government report on initial jobless claims.

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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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