Forex Pros – The pound rebounded from a two-week low against the broadly weaker U.S. dollar on Monday, after tumbling in the previous session following data showing a sharp drop in U.K. industrial output.
GBP/USD clawed back up from 1.6212, the pair’s lowest since May 25 to hit 1.6272 during early European trade, rising 0.28%.
Cable was likely to find support at 1.6130, the low of May 25 and resistance at 1.6382, Friday’s high.
Data on Friday showed U.K. industrial output contracted by 1.7% in April due to the extra public holiday for the Royal Wedding and supply chain disruptions caused by the Japanese earthquake, far below the 0.1% increase economists forecast.
The weak data reinforced expectations that the Bank of England is not likely to raise interest rates this year.
The pound was also higher against the euro, with EUR/GBP slipping 0.18% to hit 0.8825.
Later in the day, European Central Bank President Jean-Claude Trichet was to speak at an event in London, while markets in France and Germany were to remain closed for national holidays.
ForexPros.com
