Forexpros – The pound fell against the dollar Friday as positive economic data out of the U.S. sparked demand for equities and other dollar-denominated assets.
GBP/USD hit 1.5603 midway through the U.S. trading session Friday, down 0.48%, and not far from a session low of 1.5599 and a high of 1.5708.
The pair was likely to find support at 1.5599, Friday’s earlier low, and resistance at 1.5774, Wednesday’s high.
In the U.S., new-home sales hit 315,000 in November, up 1.6% above October and up 9.8% from the 287,000 reported in November of 2010.
Analysts had expected new home sales to rise to 313,000 last month.
The U.S. government also reported Friday that orders to U.S. factories for durable goods rose 3.8% in November from October, also above forecasts.
Also on Friday, the British Bankers’ Association reported that mortgage approvals hit 34.7K in November, below market expectations.
Meanwhile, the pound was down against both the euro and the yen, with EUR/GBP gaining 0.47% to hit 0.8364 and GBP/JPY falling 0.68% to hit 121.72.
Markets are calming down due to the arrival of the Christmas holidays, although traders will keep a close eye on European headlines.
Ratings agencies have threatened downgrades early in 2012.
On Monday, New Zealand will release trade balance figures while the Bank of Japan may release the minutes of its latest monetary policy meeting.
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