Forex – GBP/USD hits fresh 6-week lows as U.K. data disappoints

© Reuters. Pound drops against dollar on downbeat U.K. services PMI – The pound dropped to fresh six-week lows against the U.S. dollar on Friday, after the release of downbeat U.K. service sector data and as expectations for a March rate hike in the U.S. continued to support demand for the greenback.

hit 1.2227 during European morning trade, the pair’s lowest since January 17; the pair subsequently consolidated at 1.2235, shedding 0.26%.

Cable was likely to find support at 1.2148, the low of January 12 and resistance at 1.2308, Thursday’s high.

Research group Markit said its dropped to a five-month low of 53.3 last month from 54.5 in January. Analysts had expected the index to fall to 54.1 in February.

Meanwhile, the greenback remained broadly supported after a number of Federal Reserve officials this week for a March rate hike.

The dollar was also boosted after the U.S. Department of Labor said declined by 19,000 to 223,000 in the week ending February 25 from the previous week’s total of 242,000.

Analysts expected jobless claims to rise by 1,000 to 243,000 last week.

Sterling was also lower against the euro, with advancing 0.41% to 0.8603.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.