BRUSSELS (dpa-AFX) - The pound climbed to a fresh 6-week high against the dollar in early European deals on Tuesday despite a report showed the U.K. economy expanded at a slower pace as estimated for the second quarter.
The pound also gained against the rest of majors.
Data from the Office for National Statistics said today that Gross Domestic Product grew 0.2 percent sequentially in the second quarter, following an increase of 0.5 percent in the first quarter. The rate of growth matched economists' expectations.
On a yearly basis, the economy expanded 0.7 percent in the second quarter, slightly smaller than the 0.8 percent growth expected by economists.
The pound jumped to a fresh 6-week high of 1.6415 against the dollar at 4:35 am ET. The next upside target level for the U.K. currency is seen at 1.645. The pound-dollar pair is now worth 1.6400, compared to 1.6278 hit late New York Monday.
The pound strengthened to 1.3175 against the franc at 4:35 am ET. As of now, the pair is worth 1.3160 with 1.335 seen as the next upside target level. At yesterday's close, the pair was quoted at 1.3121.
Switzerland's consumption indicator for June fell to the lowest in six months, owing to strong decline in new car registrations, data released by UBS Bank showed.
The UBS consumption indicator dropped by 0.40 points year-on-year to 1.48 in June. This follows a 0.34 points increase in May. The latest reading is the lowest so far this year.
The pound is now worth 128.10 against the yen, compared to an early Asian session's 5-day low of 127.10. If the pound gains further, it will break the 128.4 level. The pair ended yesterday's trading at 127.44.
The pound that slipped to a 15-day low of 0.8886 against the euro at 2:55 am ET rebounded thereafter. The euro-pound pair is currently trading near yesterday's close of 0.8836. The near term resistance for the U.K. currency is seen at 0.880.
Survey results from the market research group GfK showed today that the forward-looking consumer sentiment index fell to 5.4 in August from a revised 5.5 in July. Economists had expected the index to fall to 5.6 from July's original score of 5.7.
Traders are now likely to focus on the New York session, in which the U.S. consumer confidence index for July, new home sales for June and the S&P/Case-Shiller home price index for May are slated for release.
Copyright RTT News/dpa-AFX