FXstreet.com (Córdoba) - The Dollar is extending its gains against the Pound during the American session. GBP/USD broke below 1.5900 and fell to 1.5890, posting a fresh intra-day low.
In case the pair falls further, it could find support at 1.5870 and below at 1.5820/10. Currently it trades at 1.5891/95, 1.09% below today's opening price action.
Andrew Wilkinson, Analyst at Interactive Brokers, comments: The British pound felt the full backlash of the dollar's gain and slipped to as low as $1.5920 Friday morning. Earlier producer prices data, which precedes the key consumer price data by a week, showed a larger than anticipated rise in prices at the factory gate. The 0.5% increase was bigger than the 0.1% forecast. Some are sensing that the recent relapse for the economy dogged by a weak financial sector is the more significant current emphasis for the Bank of England where management of inflation is fast becoming its secondary role.