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Forex - GBP/USD little changed after U.K. trade data

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Investing.com - The pound was little changed against the U.S. dollar on Wednesday, ahead of policy meetings by the Bank of England and the European Central Bank on Thursday, while U.K. data showed that the trade deficit narrowed in November.

GBP/USD hit 1.6075 during European morning trade, the session high; the pair subsequently consolidated at 1.6070, inching up 0.10%.

Cable was likely to find support at 1.6020, the low of January 7 and resistance at 1.6107, the high of January 4.

Investors remained cautious ahead of Thursday's ECB policy setting meeting. The ECB was widely expected to hold off cutting rates, but some market participants expected the bank to flag the possibility of rate cuts later in the year.

The BoE was expected to keep rates on hold at 0.5% and not announce any additional easing measures following its policy meeting.

The pound found support after official data showed that the U.K. trade deficit narrowed in November as exports outstripped imports.

The Office for National Statistics said the U.K. trade deficit narrowed to GBP9.2 billion last month from GBP9.4 billion in October. Analysts had forecast a deficit of GBP9.1 billion.

Sterling edged higher against the euro, with EUR/GBP slipping 0.14% to 0.8136.

Later in the day Germany was to release official data on industrial production and the euro zone was to produce final data on third quarter growth, while the U.S. was to publish official data on crude oil stockpiles.

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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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