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Forex - GBP/USD near 2-1/2 year lows on U.K. outlook woes

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Investing.com - The pound remained close to two-and-a-half year lows against the dollar on Wednesday as concerns over the economic outlook and the risk of more easing by the Bank of England weighed.

GBP/USD hit 1.4964 during European morning trade, the session high; the pair subsequently consolidated at 1.4942, rising 0.26%.

Cable was likely to find support at 1.4830, Tuesday's low and the pair's lowest since June 2010 and resistance at 1.5046, the high of March 8.

Sentiment on the pound remained weak after data on Tuesday showed that U.K. manufacturing and industrial output slumped in January.

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

The dollar continued to be supported by hopes that the U.S. economic recovery is gaining momentum, as investor's awaited U.S. data on retail sales later in the trading day.

Elsewhere, sterling was lower against the euro, with EUR/GBP down 0.32% to 0.8717.

The euro remained under pressure ahead of an auction of three-year and 15-year Italian government bonds later Wednesday, in an important test of investor appetite for the country's debt, as concerns over ongoing political uncertainty lingered following last month's inconclusive elections.

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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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