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Forex - Pound off lows vs. dollar as U.S. data eyed

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Investing.com - The pound pulled back from session lows against the dollar on Thursday ahead of the release of U.S. economic data, after falling earlier when strong U.K. second quarter growth data failed to boost demand for sterling.

GBP/USD pulled away from 1.5265, the lowest since July 22, to hit 1.5288 during European afternoon trade, still down 0.17% for the day.

Cable was likely to find support at 1.5195, the low of July 19 and resistance at 1.5388, Wednesday's high.

The dollar pared gains as markets looked ahead to U.S. reports on initial jobless claims and durable goods orders later in the day, for indications on when the Federal Reserve might start to unwind its asset purchase program.

The pound fell to session lows against the dollar and the euro earlier, despite official data showing that growth in the U.K. economy accelerated in line with expectations in the second quarter.

The Office of National Statistics said the U.K. economy expanded by 1.4% on a year-over-year basis in the second quarter, in line with expectations. The U.K. economy grew by 0.3% year-on-year in the first quarter.

The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter.

The ONS said the service sector expanded by 0.6%, the manufacturing sector grew 0.4% and the construction sector grew by 0.9%.

Sterling was lower against the euro, with EUR/GBP up 0.21% to 0.8636.

In the euro zone, data released on Thursday showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, better than expectations for a reading of 106.1.

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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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