Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Pound little changed vs. dollar after U.K. GDP data

Published 02/26/2014, 08:25 AM
Updated 02/26/2014, 08:25 AM
Pound little changed against dollar in quiet trade

Pound little changed against dollar in quiet trade

Investing.com - The pound was almost unchanged against the dollar on Wednesday after data confirmed that the rate of fourth quarter economic growth in the U.K. was unrevised at 0.7%, but the annual rate of growth was revised slightly lower.

GBP/USD hit highs of 1.6701 earlier in the session, and was last up 0.01% to 1.6682.

Cable was likely to find support at 1.6610, the low of February 21 and resistance at 1.6740, the high of February 18.

The Office for National Statistics said U.K. gross domestic product increased by 0.7% in the three-month to December, unrevised from the preliminary estimate and in line with forecasts.

On a year-over-year basis, the U.K. economy expanded by 2.7% in the fourth quarter, down slightly from the preliminary estimate for 2.8% growth.

The largest contributors to fourth quarter growth were household spending, business investment and net trade, the ONS said. Business investments were revised up 8.5% from the same period a year earlier.

The pound’s gains were held in check after two members of the Bank of England’s monetary policy committee reiterated Wednesday that the bank is planning to keep rates on hold for some time.

David Miles said recent falls in inflation meant there was less pressure to raise borrowing costs, while the bank’s chief economist Spenser Dale said it was not planning to raise rates any time soon.

Sterling pushed higher against the euro, with EUR/GBP sliding 0.10% to 0.8230.

Overall market sentiment remained subdued following a disappointing reading on U.S. consumer sentiment on Tuesday, which fuelled concerns over the strength of the economic recovery.

Recent weak U.S. economic indicators have raised doubts over whether the Federal Reserve will maintain the current pace of reductions to its stimulus program.

The U.S. was to release data on new home sales later in the trading day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.