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Forex - USD/GBP higher as U.K. factory data supports

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Investing.com - The pound held gains against the dollar on Tuesday after data showed that U.K. factory output rebounded in February, easing fears over the risk of a triple-dip recession.

GBP/USD hit 1.5325 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5312, gaining 0.39%.

Cable was likely to find support at 1.5198, Friday's low and resistance at 1.5362, Friday's high and a six-week high.

The Office for National Statistics said U.K. manufacturing production rose by 0.8% in February, beating expectations for a 0.3% increase.

However, January's figure was revised down to a fall of 1.9% from a previously reported drop of 1.5%.

Industrial production rose by 1% in February, compared to expectations for a 0.3% increase, after falling by 1.3% in January.

The report said industrial production fell 2.2% year-on-year in February, compared to expectations for a 2.8% decline.

A separate report by the ONS showed that the U.K. goods trade deficit widened to GBP 9.4 billion in February from GBP8.2 billion in January, compared to expectations for a deficit of GBP8.6 billion.

U.K. exports fell by 2.8% in February, while imports rose by 0.3%.

The pound slid lower against the yen, with GBP/JPY slipping 0.16% to 151.38, but remained close to the highest level since October 2009.

Sterling was slightly higher against the euro, with EUR/GBP sliding 0.10% to 0.8518.

Trade looked likely to remain subdued on Tuesday, with no major economic data releases from the U.S. on the calendar.

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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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