Forex

Investing.com – The pound edged lower against the U.S. dollar in thin trade on Friday, despite positive U.K. trade balance data, as sustained uncertainty over the future of the Federal Reserve’s bond-buying program continued to weigh.

GBP/USD hit 1.5512 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5513, slipping 0.16%.

Cable was likely to find support at 1.5397, the low of June 25 and resistance at 1.5653, the high of June 11.

Sterling rose to session highs against the dollar earlier, after the Office for National Statistics earlier said that the U.K. trade deficit narrowed more than expected in June, improving to GBP8.08 billion from a deficit of GBP8.67 billion the previous month.

Analysts had expected the trade deficit to narrow to GBP8.50 billion in June.

But investors remained cautious after two senior Fed officials said Tuesday that they would not rule out the withdrawal of stimulus measures at the bank’s September meeting.

The pound was steady against the euro with EUR/GBP inching 0.06% higher, to hit 0.8617.

Also Friday, official data showed that industrial production in France dropped 1.4% in June, disappointing expectations for a 0.1% rise. The previous month’s figure was revised up to a 0.3% fall from a previously estimated 0.4% decline.

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