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Forex - Pound off 5-week high vs. dollar ahead of U.K. data

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Forexpros - The pound was down against the U.S. dollar on Monday, pulling back from a five-week high, amid fears that upcoming data on U.K. second quarter economic growth could be weaker-than-expected.

GBP/USD pulled away from 1.6342, the pair's highest since June 15, to hit 1.6283 during European afternoon trade, slipping 0.09%.

Cable was likely to find support at 1.6120, the low of July 21 and resistance at 1.6382, the high of June 15.

If Tuesday's data showed weaker-than-expected economic growth or a contraction it would underline expectations that the Bank of England will keep interest rates on hold for the rest of this year and add to concerns that the central bank may lean towards further monetary stimulus to boost growth.

Meanwhile, fears over a possible U.S. default escalated after talks between President Barack Obama and congressional leaders, aimed at raising the country's USD14.3 trillion debt ceiling, broke down over the weekend.

House Speaker John Boehner told Republican lawmakers on a conference call Sunday evening that no "grand deal" on raising the debt ceiling was possible with President Barack Obama.

The pound was also lower against the euro, with EUR/GBP rising 0.13% to hit 0.8819.

Earlier Monday, the British Banker's Association said mortgage approvals in the U.K. rose slightly more-than-expected in June, as consumers pushed back expectations for a near-term interest rate hike by the BoE.

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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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