Forex – GBP/USD pushes lower after U.K. data disappoints

Pound extends losses vs. rivals on weak U.K. data – The pound pushed lower against the U.S. dollar on Friday, after the release of downbeat U.K. manufacturing production data, while sentiment on the greenback improved ahead of a highly-anticipated U.S. jobs report due later in the day.

hit 1.2919 during European morning trade, the pair’s lowest since Wednesday; the pair subsequently consolidated at 1.2921, sliding 0.38%.

Cable was likely to find support at 1.2890, Wednesday’s low and resistance at 1.2984, Thursday’s high.

The U.K. Office for National Statistics reported that fell 0.2% in May, disappointing expectations for a 0.5% rise and after an increase of 0.2% the previous month.

Year-on-year, increased by 0.4%, less than the expeccted 1.0% advance.

The report also showed that slipped 0.1% in May, compared to expectations for a 0.4% rise.

The greenback initially weakened after payrolls processor ADP reported on Thursday that 158,000 jobs in June, well below economists’ expectations.

A separate report showed that unexpectedly rose by 4,000 to 248,000 last week.

The data came after Wednesday’s showed a lack of consensus among policymakers over the outlook for inflation and how it could impact the future pace of interest rate increases.

The Fed hiked rates at its June meeting and stuck to its forecast for one more rate hike this year and three in 2018, but the subdued inflation outlook has since raised doubts over whether the Fed will be able to stick to its planned tightening path.

But sentiment on the U.S. dollar improved ahead of a highly-anticipated U.S. employment report due later in the day.

Sterling was also lower against the euro, with rising 0.28% to 0.8833.

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.