Investing.com - The pound remained higher against the U.S. dollar on Thursday, after the release of disappointing U.S. jobless data added to expectations for the Federal Reserve to maintain its stimulus program.
GBP/USD hit 1.5194 during U.S. morning trade, the pair’s highest since July 4; the pair subsequently consolidated at 1.5120, climbing 0.70%.
Cable was likely to find support at 1.4996, the session low and resistance at 1.5191, the session high.
The Department of Labor said the number of people filing for initial jobless benefits last week rose by 16,000 to a seasonally adjusted 360,000, compared to expectations for a drop of 4,000 to 340,000.
The greenback weakened broadly ealier after Federal Reserve Chairman Ben Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while many others believe the labor market still remains too weak.
The pound fell below the 1.50 against the dollar last Thursday after the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.
Sterling was steady against the euro with EUR/GBP edging down 0.06% to hit 0.8635.
Sentiment on the euro remained vulnerable after the European Central Bank’s monthly bulletin said that the extended period of time the bank expects interest rates to remain at present or lower levels is “flexible” and indicated that further rate cuts are possible.
GBP/USD hit 1.5194 during U.S. morning trade, the pair’s highest since July 4; the pair subsequently consolidated at 1.5120, climbing 0.70%.
Cable was likely to find support at 1.4996, the session low and resistance at 1.5191, the session high.
The Department of Labor said the number of people filing for initial jobless benefits last week rose by 16,000 to a seasonally adjusted 360,000, compared to expectations for a drop of 4,000 to 340,000.
The greenback weakened broadly ealier after Federal Reserve Chairman Ben Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while many others believe the labor market still remains too weak.
The pound fell below the 1.50 against the dollar last Thursday after the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.
Sterling was steady against the euro with EUR/GBP edging down 0.06% to hit 0.8635.
Sentiment on the euro remained vulnerable after the European Central Bank’s monthly bulletin said that the extended period of time the bank expects interest rates to remain at present or lower levels is “flexible” and indicated that further rate cuts are possible.