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COZfx: GBP/USD slips lower after UK GDP, current account data

Discussion in 'Analisa Fundamental' started by harryer, Sep 27, 2013.

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  1. harryer

    harryer Member

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    COZforex: The pound slipped lower against the US dollar on Thursday, after data showed that the UK economy expanded in line with expectations in the last quarter, while uncertainty over the Federal Reserve's next policy moves continued to weigh.

    GBP/USD hit 1.6036 amid European morning trade, the session low; the pair subsequently consolidated at 1.6039, shedding 0.26%. COZFX strategist Nigel Boynton said, GBP/USD is predicted to find support at 1.6005, and a drop through could take it to the next support line of 1.5936. Meanwhile, the pair is predicted to find its first resistance at 1.6116, and a rise through could take it to the next resistance line of 1.6158.

    Official data showed that UK gross domestic product expanded by 0.7% in the second quarter, in line with market expectations. On a yearly basis, UK GDP rise 1.3% in the three months to June compared to expectations for a 1.5% increase.

    A separate report showed that the UK current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March. Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.

    Meanwhile, investors were eyeing the final reading of US second quarter GDP due later in the day, after a recent string of economic reports underlined concerns over the outlook for the US economic recovery. Stronger-than-expected GDP data would likely fuel speculation that the Fed could announce a stimulus reduction before the year end.

    Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.

    Later in the day, the US was to release the weekly report on initial jobless claims, as well as final data on second quarter growth and private sector data on pending home sales.

    (COZ forex UK)
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