21 Jul 2015
GBP/USD drops to session lows at 1.5530
FXStreet (Mumbai) - The British pound wiped-out gains and fell in red versus the US dollar in the mid-European session, knocking-off GBP/USD to fresh session lows near 1.55 handle, as traders continue to weigh the latest UK public finances print which booked the lowest figures in seven years in June while ignoring broad USD weakness.
GBP/USD drops from 1.5575
The GBP/USD pair trades -0.17% lower at 1.5536, hovering close to fresh session lows reached at 1.5530 some minutes ago. The major accelerated losses below 1.5550 levels and printed fresh lows as downbeat UK public borrowings data continue to hamper sentiment around the British currency.
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 lost strength and slipped in the negative territory despite broad based US dollar weakness amid a data-light trading session today. 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 1.5530 (Today’s Low) below which it could extend losses to 1.5500 levels.
GBP/USD drops from 1.5575
The GBP/USD pair trades -0.17% lower at 1.5536, hovering close to fresh session lows reached at 1.5530 some minutes ago. The major accelerated losses below 1.5550 levels and printed fresh lows as downbeat UK public borrowings data continue to hamper sentiment around the British currency.
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 lost strength and slipped in the negative territory despite broad based US dollar weakness amid a data-light trading session today. 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 1.5530 (Today’s Low) below which it could extend losses to 1.5500 levels.