Forex – GBP/USD falls following U.K. industrial orders data
The Pound dropped against the U.S. dollar on Monday, as the greenback recovered some position after declining sharply previous week on the back of fresh incertitude over the timing of a U.S. rate rise, as markets eyed upcoming U.K. reports on industrial orders prospects.
GBP/USD reached 1.4839 during European morning trade, which is the pair’s lowest level since Friday; the pair then consolidated at 1.4867, retreating 0.57%.
Cable was expected to find support at 1.4720 level, Friday’s low and resistance at 1.5012, the high of March 19.
The dollar is remained under pressure along with uncertainty over the path of U.S. financial policy after the Federal Reserve eased its forecasts for inflation and growth and decreased its interest rate projections last week.
However, regardless of the past week’s reversal the greenback was expected to continue to strengthen, with the Fed still supposed to increase interest rates ahead of other central banks.
The pound had established some support on Friday after data confirmed that U.K. public sector net borrowing increased by £6.22 billion in February, below the expected raise of £7.70 billion. January’s figure was revised to a £8.93 billion collapse from a previously anticipated decline of £9.41 billion.
Sterling was lower against the euro, with EUR/GBP rising 0.62% to 0.7274. Afterward, the U.S. was to release a data on existing home sales.