Pound dips, as greenback regains strength

Pound dips, as greenback regains strength

15 April 2015, 11:16
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On Wednesday the pound declined against its US peer, as markets digested Tuesday's negative U.S. data and as disappointing reports from China pressured market sentiment.

GBP/USD hit 1.4719 during European morning trade, the session low; the pair subsequently consolidated at 1.4723, sliding 0.40%. Cable was likely to find support at 1.4563, the low of April 13 and a five-year low and resistance at 1.4888, the high of April 9.

The greenback regained strength after the U.S. Commerce Department reported on Tuesday that retail sales rose 0.9% last month, disappointing expectations for a gain of 1.0%.

Earlier, data indicated that China's gross domestic product rose 1.3% in the first quarter, below expectations for 1.4% and down from a 1.5% growth rate in the three months to December.

A separate report showed that industrial production in China rose by an annualized rate of 5.6% in March, disappointing expectations for a 6.9% gain, after a 6.8% rise the previous month.

The weak data weighed on the market sentiment.

A day earlier, the British currency had weakened after data showed that the annual rate of U.K. consumer inflation remained unchanged at a record low zero in March, unchanged from the previous month and in line with forecasts.

Core inflation, which strips out volatile food and energy costs, slowed to an almost nine-year low of 1.0% last month from 1.2% in February.

Sterling was higher against the euro, with EUR/GBP shedding 0.27% to 0.7188.

The U.S. is expected to release reports on industrial production and manufacturing activity in New York state later in the day.

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