Forex – GBP/USD Higher After Mixed UK Economic Reports

© Reuters. Pound supported vs. weaker dollar after mixed U.S. data results – The pound was higher against the U.S. dollar on Friday, after the release of mixed UK economic reports as sentiment on the greenback remained vulnerable amid fresh U.S. political turmoil.

was up 0.32% at 1.3956 by 04:35 a.m. ET (08:35 GMT), still close toTuesday’s two-week low of 1.3836.

Data on Friday showed that UK manufacturing production rose in December, in line with expectations, while industrial production dropped , disappointing expectations for a 0.9% fall.

A separate report showed that the UK trade deficit widened to in December from a revised £12.46 the previous month, while analysts had expected the deficit to narrow to £11.50 billion.

Meanwhile, the dollar weakened after a midnight deadline to pass the U.S. budget deal due to a prolonged speech by Senator Rand Paul, who objected to $300 billion in deficit spending in the bill saying that it would “loot the Treasury.”

U.S. congressional leaders had reached a two-year budget deal on Wednesday to raise government spending by almost $300 billion.

However, the greenback’s losses were expected to remain limited as U.S. bond yields turned higher again. The yield on benchmark was still hovering near a recent four-year peak on Friday.

Sterling was lower against the euro, with down 0.10% at 0.8793.

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