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Forex - Pound hits one-month low against dollar

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Investing.com - The pound fell to one-month lows against the U.S. dollar on Wednesday, as concerns over the outlook for the U.K. economy and disappointing euro zone economic data weighed.

GBP/USD hit 1.6008 during European afternoon trade, the pair's lowest since December 7; the pair subsequently consolidated at 1.6021, down 0.21%.

Cable was likely to find support at 1.5961, the low of November 28 and resistance at 1.6074, the session high.

Investors remained cautious ahead of Thursday's policy setting meetings by the European Central Bank and the Bank of England.

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.

Analysts expected the BoE to keep rates on hold at 0.5% and not announce any additional easing measures.

Market sentiment was also hit after official data showed that German industrial production rose 0.2% November, compared to expectations for a 1% increase, underlining concerns over the outlook for the region's largest economy.

In the U.K., official data showed that the trade deficit narrowed in November as exports outstripped imports.

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

Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.03% to 0.8150.

Later Wednesday, 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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