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Forex - GBP/USD edges lower after Chinese data

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Investing.com - The pound edged lower against the dollar on Monday as concerns over the outlook for the global economy weighed following the release of weaker-than-forecast Chinese first quarter growth data.

GBP/USD hit 1.5309 during European morning trade, the pair's lowest since April 10; the pair subsequently consolidated at 1.5331, dipping 0.06%.

Cable was likely to find support at 1.5249, the low of April 9 and resistance at 1.5410, Thursday's high and a seven-week high.

Market sentiment was hit after official data showed the Chinese economy expanded by 7.7% year-on-year in the three months to March, down from 7.9% in the fourth quarter and undershooting expectations for 8.0% growth.

Separate reports showed that Chinese industrial production also came in below expectations in March, while retail sales rose just slightly more than forecast.

The data came after a report on Friday showed that U.S. retail sales fell 0.4% in March, raising concerns over the outlook for first quarter growth.

The pound remained somewhat supported after recent U.K. economic data fuelled hopes that the economy could avoid a triple-dip recession in the first quarter.

Sterling was higher against the euro, with EUR/GBP slipping 0.17% to 0.8529.

The U.S. was to release data on manufacturing activity in New York state later in the day, while the euro zone was to publish official data on the trade balance.

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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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