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Forex - GBP/USD hits 1-week low after U.S. durables orders jump

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Forexpros - The pound extended losses against the U.S. dollar on Wednesday, falling to a one-week low after official data showed that U.S. orders for long lasting manufactured goods jumped in July.

GBP/USD hit 1.6386 during U.S. morning trade, the pair's lowest since August 17; the pair subsequently consolidated at 1.6401, shedding 0.56%.

Cable was likely to find support at 1.6254, the low of August 15 and resistance at 1.6533, the days high.

The Commerce Department said that core durable goods orders, which exclude transportation items, rose by 0.7% in July, confounding expectations for a 0.4% decline.

The previous month's figure was revised up to 0.6% from a previously reported 0.1% increase.

Durable goods orders, which include transportation items, jumped by a seasonally adjusted 4.0% in July, doubling expectations for a 2.0% gain.

June's figure was revised to a 1.3% drop from a previously reported 2.1% decline.

The pound was also lower against the euro, with EUR/GBP rising 0.38% to hit 0.8788.

The greenback had come under broad selling pressure earlier in the session amid mounting expectations that Federal Reserve Chairman Ben Bernanke would signal that fresh monetary stimulus may be necessary when he speaks at the Fed's annual retreat in Jackson Hole later in the week.

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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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