21 Jul 2015
GBP/USD off highs, near 1.5575
FXStreet (Mumbai) - The British pound retraced a spike to session highs versus the US dollar in the European session, bringing GBP/USD back near 1.5575 levels, as sterling was dented after UK public finances again reached record breaking figures with the lowest June borrowing in seven years as reflected by the latest data.
GBP/USD pares gains on data
The GBP/USD pair trades modestly flat at 1.5573, erasing most gains shortly after the data release. The major failed to hold at higher levels and now trades muted as the pound was negatively affected by UK’s public sector net borrowing data.
Public sector net borrowing excluding banks in June came in higher than expected at £9.4 billion, but still the lowest borrowing June figure since 2008 and £0.8 billion lower than last year as tax receipts continued to grow, figures from the Office for National Statistics (ONS) showed on Tuesday.
However, the cable remains slightly supported on the back of softer US dollar across the board on profit-taking after the recent upsurge. The dollar index which measures the greenback’s strength against its major peers now trades -0.17% lower at 98.01.
Looking ahead, UK traders await Wednesday's BoE minutes, especially after Governor Mark Carney explicitly stated that rates could rise at the turn of this year.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5600 above which gains could be extended to 1.5630 (July 20 High) levels. On the flip side, support is seen at 1.5556 (Today’s Low) below which it could extend losses to 1.5536 (July 20 Low) levels.
GBP/USD pares gains on data
The GBP/USD pair trades modestly flat at 1.5573, erasing most gains shortly after the data release. The major failed to hold at higher levels and now trades muted as the pound was negatively affected by UK’s public sector net borrowing data.
Public sector net borrowing excluding banks in June came in higher than expected at £9.4 billion, but still the lowest borrowing June figure since 2008 and £0.8 billion lower than last year as tax receipts continued to grow, figures from the Office for National Statistics (ONS) showed on Tuesday.
However, the cable remains slightly supported on the back of softer US dollar across the board on profit-taking after the recent upsurge. The dollar index which measures the greenback’s strength against its major peers now trades -0.17% lower at 98.01.
Looking ahead, UK traders await Wednesday's BoE minutes, especially after Governor Mark Carney explicitly stated that rates could rise at the turn of this year.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5600 above which gains could be extended to 1.5630 (July 20 High) levels. On the flip side, support is seen at 1.5556 (Today’s Low) below which it could extend losses to 1.5536 (July 20 Low) levels.