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Forex - GBP/USD slips lower despite strong U.K. data

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Investing.com -

Investing.com - The pound slipped lower against the U.S. dollar on Tuesday, despite an earlier report showing that manufacturing production in the U.K. rose for a third straight month in April, pushing the annual rate to a three year high.

GBP/USD hit 1.6759 during U.S. morning trade, the pair's lowest since June 5; the pair subsequently consolidated at 1.6767, shedding 0.21%.

Cable was likely to find support at 1.6699, the low of June 4 and resistance at 1.6845, the high of June 6.

The pound shrugged off an earlier report by the Office for National Statistics showing that U.K. manufacturing output rose 0.4% in April from a month earlier, as expected. On a year-over-year basis manufacturing production rose 4.4% ahead of forecasts for a 4% increase. It was the largest annual increase in output since early 2011.

Industrial production rose 0.4% in April, in line with forecasts, bringing the annual rate to 3.0%. Economists had expected an annual gain of 2.8%.

Meanwhile, the dollar remained supported after Friday's nonfarm payrolls report showed that the U.S. economy added jobs for the fourth successive month in May, with employment returning to its pre-recession peak.

Sterling was higher against the euro, with EUR/GBP edging down 0.12% to 0.8079.

The euro remained under pressure after the European Central Bank on Thursday cut the main refinancing rate in the euro area to a record low 0.15% and imposed negative deposit rates on commercial lenders, in a bid to stimulate lending to businesses.

ECB President Mario Draghi also kept the option of quantitative easing on the table.

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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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