12 May 2015
GBP/USD hits fresh 5-month highs, 1.57 in sight
FXStreet (Mumbai) - The British pound outperformed its US counterpart during the mid-European session, with GBP/USD galloping towards 1.57 handle, largely on the back of impressive manufacturing and industrial production data from the UK. While, broad USD weakness also supports the cable.
GBP/USD accelerates above 1.5600
The GBP/USD pair trades 0.60% higher at fresh five month highs at 1.5682. The cable edged rallied this session after the UK industrial and manufacturing figures outpaced estimates.
The latest industrial and manufacturing production data for March, which came out above expectations, with the first data set rising from 0.1% to 0.5%, while the latter eased to 0.4% from 0.5%, both on a monthly basis.
Adding to gains in the GBP/USD pair, the US dollar extends its declines versus its major rivals, despite rising US treasury yields. The US dollar index (DXY) which measures the relative strength of the greenback versus six major currencies now trades at 94.37, down -0.78% on the day.
Meanwhile, the market will now be looking toward the Bank of England (BoE) Quarterly Inflation Report to be published tomorrow, which will include an updated outlook for inflation, growth and the labour market, and accompanying comments by BoE Governor Mark Carney.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5700 above which gains could be extended to 1.5757 (Dec 17 High) levels. On the flip side, support is seen at 1.5600 below which it could extend losses to 1.5558 (Today’s Low) levels.
GBP/USD accelerates above 1.5600
The GBP/USD pair trades 0.60% higher at fresh five month highs at 1.5682. The cable edged rallied this session after the UK industrial and manufacturing figures outpaced estimates.
The latest industrial and manufacturing production data for March, which came out above expectations, with the first data set rising from 0.1% to 0.5%, while the latter eased to 0.4% from 0.5%, both on a monthly basis.
Adding to gains in the GBP/USD pair, the US dollar extends its declines versus its major rivals, despite rising US treasury yields. The US dollar index (DXY) which measures the relative strength of the greenback versus six major currencies now trades at 94.37, down -0.78% on the day.
Meanwhile, the market will now be looking toward the Bank of England (BoE) Quarterly Inflation Report to be published tomorrow, which will include an updated outlook for inflation, growth and the labour market, and accompanying comments by BoE Governor Mark Carney.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5700 above which gains could be extended to 1.5757 (Dec 17 High) levels. On the flip side, support is seen at 1.5600 below which it could extend losses to 1.5558 (Today’s Low) levels.