Investing.com – The pound pared gains against the U.S. dollar on Thursday, as trade remained volatile ahead of the Christmas weekend, after a Bank of England official said that he expected interest rates to rise and following a flurry of mixed U.S. data.
GBP/USD hit 1.5436 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.5394, climbing 0.05%.
The pair was likely to find support at 1.5347, the low of September 14, and resistance at 1.5493, Wednesday’s high.
Earlier in the day, Bank of England Markets Director Paul Fisher said in an interview with the Daily Telegraph that he expected U.K. interest rates to rise “to a normalized position” of about 5%, while adding that the possibility of an increase in quantitative easing by the central bank was less than what it was a year ago, “but it’s still not ruled out.”
Mr. Fisher added that the U.K. economy may contract for one quarter in 2011, saying that, “The output growth of the U.K. tends not to be that volatile quarter-to-quarter but in this sort of situation when you are recovering from a deep recession it is not impossible to see contraction over one quarter”.
Meanwhile, a report from the U.S. Department of Labor earlier Thursday showed that the number of individuals filing for initial jobless benefits in the week ended December 18 fell unexpectedly to a seasonally adjusted 420K. Analysts had expected initial jobless claims to rise to 424K.
Also Thursday, official data showed that U.S. core durable goods orders rose more-than-expected in November, rising by 2.4%, after falling by a revised 1.9% in October. Analysts had expected U.S. core durable goods orders to rise by 1.0% in November.
The report said that durable goods orders, which include transportation items, declined for the second consecutive month in November, falling by 1.3%, after falling by a revised 3.1% in October. Analysts had expected durable goods orders to fall by 1.0% in November.
Elsewhere, the pound was also up against the euro, with EUR/GBP shedding 0.29% to hit 0.8489.
Also Thursday, official data showed that U.S. personal income rose more-than-expected, personal spending rose less-than-expected, while the core PCE price index rose in line with expectations in November.
Meanwhile, a separate report showed that U.S. new home sales in November rose less-than-expected, while the University of Michigan consumer sentiment index increased less-than-expected in December.
GBP/USD hit 1.5436 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.5394, climbing 0.05%.
The pair was likely to find support at 1.5347, the low of September 14, and resistance at 1.5493, Wednesday’s high.
Earlier in the day, Bank of England Markets Director Paul Fisher said in an interview with the Daily Telegraph that he expected U.K. interest rates to rise “to a normalized position” of about 5%, while adding that the possibility of an increase in quantitative easing by the central bank was less than what it was a year ago, “but it’s still not ruled out.”
Mr. Fisher added that the U.K. economy may contract for one quarter in 2011, saying that, “The output growth of the U.K. tends not to be that volatile quarter-to-quarter but in this sort of situation when you are recovering from a deep recession it is not impossible to see contraction over one quarter”.
Meanwhile, a report from the U.S. Department of Labor earlier Thursday showed that the number of individuals filing for initial jobless benefits in the week ended December 18 fell unexpectedly to a seasonally adjusted 420K. Analysts had expected initial jobless claims to rise to 424K.
Also Thursday, official data showed that U.S. core durable goods orders rose more-than-expected in November, rising by 2.4%, after falling by a revised 1.9% in October. Analysts had expected U.S. core durable goods orders to rise by 1.0% in November.
The report said that durable goods orders, which include transportation items, declined for the second consecutive month in November, falling by 1.3%, after falling by a revised 3.1% in October. Analysts had expected durable goods orders to fall by 1.0% in November.
Elsewhere, the pound was also up against the euro, with EUR/GBP shedding 0.29% to hit 0.8489.
Also Thursday, official data showed that U.S. personal income rose more-than-expected, personal spending rose less-than-expected, while the core PCE price index rose in line with expectations in November.
Meanwhile, a separate report showed that U.S. new home sales in November rose less-than-expected, while the University of Michigan consumer sentiment index increased less-than-expected in December.