Forex News: Pound Firms As U.K. GDP Beats Estimates

Pound Firms As U.K. GDP Beats Estimates

(RTTNews) - The pound advanced against its major counterparts in early European deals on Friday, as better-than-expected U.K. GDP data diminishing the likelihood of a recession in the first quarter.

Data from the Office for National Statistics showed that the U.K. economy expanded 0.3 percent month-on-month in January, after shrinking by 0.5 percent in December.

U.K. GDP came in flat year-on-year in January, beating expectations for a drop of 0.1 percent.

The currency was further supported by a weakness in the U.S. dollar, as a rise in jobless claims in the U.S. reduced expectations for a 50 basis point hike by the Federal Reserve.

All eyes remain on the U.S. monthly jobs report due out later in the day, which could significantly impact the outlook for interest rates.

The pound was up against the euro, at a 3-day high of 0.8856. Next near term resistance for the currency is likely seen around the 0.86 level.

The pound climbed to 3-day highs of 1.1963 against the greenback and 163.36 against the yen, from its early lows of 1.1907 and 161.94, respectively. The currency is seen facing resistance around 1.21 against the greenback and 165.00 against the yen.

The pound rebounded to 1.1126 against the franc, from an early near 4-month low of 1.1065. On the upside, 1.13 is possibly seen as its next resistance level.

Looking ahead, U.S. and Canadian jobs data and U.S. monthly budget statement, all for February, are due in the New York session.

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