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GBP / USD edges higher on upbeat UK data

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Forex - GBP/USD edges higher on upbeat U.K. data

The pound rose against the US dollar on Friday, with the support of the release of information U.K. optimistic and the decision of the Federal Reserve this week to leave its monetary policy unchanged continued to weigh on the US currency.

GBP / USD hit 1.3214 during early trading European morning trade, the session high; the pair subsequently consolidated at 1.3188, adding 0.19%.

Cable was likely to find support at 1.3055, the low of July 26 and resistance at 1.3293, high-TH, of 22 July.
The Bank of England said Friday that net lending to individuals rose to £ 5.2 billion in June £ 4.5 billion in May, whose figure was revised up from an estimated £ 4.3 billion previously.

Analysts had expected net lending to individuals up to hit £ 4.2 billion last month.

But gains were capped Pound investors were devoted to policy meeting the Bank of England next week amid growing expectations of a rate cut.

The Financial Times reported Tuesday that Martin Weale, member of rate-setting committee of the Bank of England, ceased to oppose the relaxation and now favored immediate stimulus.

Meanwhile, the dollar remained under pressure after the Fed left interest rates unchanged at the conclusion of its policy meeting two days on Wednesday, in a widely expected move.

In its monthly policy statement, the Fed said that “short-term risks to the economic outlook have diminished,” and that the labor market has “strengthened”.

Market participants now eyeing the release of second quarter US economic growth data due Friday afternoon for more indications about the strength of the economy.

Sterling was slightly higher against the euro, with EUR / GBP at 0.8409.


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