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Forex - GBP/USD remains lower amid U.K. growth concerns

ForexMar 12, 2013 11:28AM ET
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Investing.com - The pound remained lower against the U.S. dollar on Tuesday, as downbeat manufacturing data from the U.K. added to concerns over the country's outlook for economic growth.

GBP/USD hit 1.4832 during U.S. morning trade, , the pair’s lowest since June 2010; the pair subsequently consolidated at 1.4874, sliding 0.27%.

Cable was likely to find support at 1.4832, the session low and resistance at 1.4942, Monday’s high.

Sterling remained under pressure after the Office for National Statistics said that manufacturing production dropped 1.5% in January, missing expectations for a 0.1% increase.

The ONS said industrial output also missed forecasts for 0.1% increase, falling 1.2% in January.

The data came after a report earlier this month showed that the U.K. manufacturing sector contracted unexpectedly in February, fuelling concerns over prospects for a triple-dip recession and increasing the risk of more easing by the Bank of England.

Meanwhile, a separate report showed that the U.K. trade deficit narrowed to GBP8.19 billion in January, from GBP8.73 billion the previous month.

Economists had expected the deficit to widen to GBP9.0 billion.

Meanwhile, the dollar continued to be supported by optimism over the improving U.S. recovery after data on Friday showed that the economy added significantly more jobs than forecast in February, with the unemployment rate falling to a four-year low of 7.7%.

The pound was also lower against the euro, with EUR/GBP rising 0.21% to hit 0.8764.

The single currency remained under pressure amid concerns over the economic outlook for the euro zone, while worries over ongoing political uncertainty in Italy also weighed.

Forex - GBP/USD remains lower amid U.K. growth concerns

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