Forex - GBP/USD flat to higher on soft U.S. data, BoE comments

The pound traded higher against the dollar on Wednesday after U.S. industrial output and wholesale pricing data missed expectations earlier.

Supporting the pair, the Bank of England forecast an uptick in economic growth later this year, though trading was choppy.

In U.S. trading on Wednesday, GBP/USD was up 0.03% at 1.5216, up from a session low of 1.5174 and off from a high of 1.5272.

Cable was likely to test support at 1.5099, the low of April 2 and resistance at 1.5331, Tuesday's high.

The Bank of England predicted earlier that U.K. economic growth may speed up to 0.5% in the second quarter from 0.3% in the first three months of the year, which gave the pound support. 

Furthermore, official data showed that the number of unemployed people in the U.K. declined more than expected in April, dropping by 7,300 after a 9,900 decline the previous month. Analysts were expecting a decline of 3,000. 

Separately, the U.K. unemployment rate ticked down to 7.8% in March from 7.9% in February. 

Analysts were expecting the unemployment rate to remain unchanged.

The U.S., meanwhile, saw its share of disappointing data.

Government data released earlier revealed that U.S. industrial production fell more than expected in April, contracting 0.5% after expanding a revised 0.3% in March. 

Analysts were expecting industrial production, which gauges output at the country's factories, mines and utilities, to contract by 0.2% last month. 

Prices at the wholesale level in the U.S. disappointed as well.

The U.S. Department of Labor said the country's producer price index fell 0.7% in April, outpacing analysts calls for a 0.6% fall and beyond the 0.6% decline during the previous month. 

Core producer price inflation, which excludes food and energy, rose 0.1% last month, in line with expectations after a 0.2% increase the previous month. 

A regional manufacturing barometer in the U.S. disappointed as well.

The Federal Reserve Bank of New York's Empire State manufacturing index slid to minus 1.4 in May, from a reading of 3.1, disappointing expectations for a rise to 4.0.

Offsetting Cable's gains, however, was a global race to the greenback as markets shunned risk-on assets and chased safety.

The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP trading down 0.42% at 0.8460 and GBP/JPY up 0.02% at 155.71.

On Thursday, the U.S. will unveil official data on building permits and housing starts. The U.S. is also to release official data on consumer inflation, initial jobless claims and the Philly Fed manufacturing index.