Forex - GBP/USD trims gains after weak U.K. data

Investing.com - The pound trimmed gains against the U.S. dollar on Friday, after the release of downbeat U.K. economic reports, although sentiment on the greenback remained vulnerable due to the Federal Reserve's cautious stance on rate hikes.

pulled back from 1.4140, the session high, to hit 1.4098 during European morning trade, still up 0.32%.

Cable was likely to find support at 1.4004, the low of April 6 and a one-month low and resistance at 1.4280, the high of April 5.

The U.K. Office for National Statistics reported on Friday that declined by 1.1% in February, compared to expectations for a 0.2% fall. Manufacturing production rose by 0.5% in January, whose figure was revised from a previously estimated 0.7% gain.

Year-on-year, dropped 1.8% in February, confounding expectations for a 0.7% fall.

The report also showed that slipped by 0.3% in February, compared to expectations for a 0.1% rise and after a downwardly revised 0.2% gain the previous month.

Another report showed that the narrowed to £11.96 billion in February from £12.16 billion in January, whose figure was revised from a previously estimated deficit of £10.29 billion.

Analysts had expected the trade deficit to narrow to £10.20 billion in February.

Meanwhile, the dollar remained under pressure after on Wednesday indicated that the central bank is unlikely to raise interest rates before June due to concerns over global economic growth.

The greenback briefly strengthened earlier, after Fed Chair Janet Yellen said late Thursday that the U.S. economy was not a "bubble economy" and that the labor market was "healing".

Yellen also said that the December decision to raise interest rates was not a mistake.

Sterling was higher against the euro, with shedding 0.27% to 0.8074.

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.

Source → Forex - GBP/USD trims gains after weak U.K. data