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Forex - GBP/USD lower on U.K. data, U.S. concerns

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Investing.com - The pound was lower against the U.S. dollar on Thursday, after disappointing U.K. data and as concerns over the U.S. debt ceiling weighed despite the recent announcement of a long awaited U.S. budget deal.

GBP/USD hit 1.6202 during European morning trade, the pair's lowest since December 31; the pair subsequently consolidated at 1.6233, slipping 0.13%.

Cable was likely to find support at 1.6134, the low of December 31 and resistance at 1.6274, the high of December 31.

Markit research firm and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to a seasonally adjusted 48.7 in December from a reading of 49.3 in November, slowing to a six-month low.

Economists had expected the index to ease up to 49.5 last month.

Meanwhile, investors remained cautious over the longer term outlook in the U.S., with negotiations on raising the debt ceiling still to come in February.

Sentiment strengthened on Tuesday after U.S. lawmakers passed a compromise bill to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

Sterling was higher against the euro with EUR/GBP shedding 0.25%, to hit 0.8091.

Later in the day, the U.S. was to release a report on ADP nonfarm payrolls, as well as its weekly government report on initial jobless claims. In addition, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.

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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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