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Forex - GBP/USD pushes higher but upside limited

Published 03/14/2013, 09:25 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound pushed higher against the dollar on Thursday but remained close to two-and-a-half year lows as demand for the greenback continued to be underpinned by optimism that the U.S. recovery is gaining traction.

GBP/USD hit 1.4963 during European afternoon trade, the session high; the pair subsequently consolidated at 1.4961, gaining 0.26%.

Cable was likely to find support at 1.4830, Tuesday’s low and the pair’s lowest since June 2010 and resistance at 1.5046, the high of March 8.

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 10,000 to a seasonally adjusted 332,000, last week compared to expectations for an increase of 8,000 to 350,000.

The unexpectedly strong data, together with recent stronger-than-forecast data on nonfarm payrolls and retail sales fuelled optimism over the durability of the U.S. economic recovery.

Sterling remained under pressure after data earlier in the week showing that U.K. manufacturing and industrial output slumped in January reinforced concerns over the threat of a triple dip recession and the risk of further easing by the Bank of England.

The pound was higher against the euro, with EUR/GBP down 0.42% to 0.8649.

Also Thursday, official data showed that U.S. producer prices rose by a seasonally adjusted 0.7% in February, in line with expectations.




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