Forex Pros – The pound fell to a three-week low against the U.S. dollar on Thursday, following a report showing that U.K. industrial output rose less-than-expected in March, dampening hopes for an upward revision to overall first-quarter growth.
GBP/USD hit 1.6251 during European early afternoon trade, the pair’s lowest since April 19; the pair subsequently consolidated at 1.6256, shedding 0.52%.
Cable was likely to find short-term support at 1.6164, the low of April 18 and resistance at 1.6421, Tuesday’s high.
The Office for National Statistics said that industrial output rose 0.3% in March after dropping by 1.2% in February, disappointing expectations for a 0.9% increase.
Manufacturing output, which excludes utilities and oil and gas extraction, also rose less than expected in March, up by 0.2%, after a flat reading in February.
The statistics office said the figures meant growth in the sector came in at just 0.2% in the first quarter, compared with an estimate of 0.4% in the preliminary reading of gross domestic product.
The pound was also lower against the euro, with EUR/GBP rising 0.23% to hit 0.8701.
Later in the day, the U.S. was to publish a report on initial jobless claims as well as official data on producer price inflation and retail sales. In addition, Federal Reserve Chairman Ben Bernanke was to testify before the Senate Banking Committee in Washington.
ForexPros.com
