Investing.com – The pound pared gains against the U.S. dollar on Wednesday, after better-than-expected U.S. jobs data and following the release of the Bank of England’s quarterly inflation report.
GBP/USD hit 1.6114 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.6029, rising 0.27%.
Cable was likely to find support at 1.5876, the low of October 29 and resistance at 1.6212, Monday’s high.
Earlier in the day, official U.S. data showed that the number of individuals filing for initial jobless benefits in the week ending November 6 fell to a seasonally adjusted 435K, after rising to a revised 459K in the preceding week. Analysts had expected initial jobless claims to fall to 450K in the week ending November 6.
Also Wednesday, the Bank of England said in its quarterly inflation report that while it expected inflation to drop below 2.0% by the end of 2012, there was a wider than usual divergence of views.
In the report, the central bank said, “There are significant uncertainties around the outlook for inflation. Chances of inflation being either above or below the target by the end of the forecast period are judged to be roughly equal”.
The pound was also up against the euro, with EUR/GBP tumbling 0.85% to hit 0.8542.
Earlier Wednesday, official U.S. data showed that the country’s trade deficit narrowed more-than-expected in September, while import price rose less-than-expected.
GBP/USD hit 1.6114 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.6029, rising 0.27%.
Cable was likely to find support at 1.5876, the low of October 29 and resistance at 1.6212, Monday’s high.
Earlier in the day, official U.S. data showed that the number of individuals filing for initial jobless benefits in the week ending November 6 fell to a seasonally adjusted 435K, after rising to a revised 459K in the preceding week. Analysts had expected initial jobless claims to fall to 450K in the week ending November 6.
Also Wednesday, the Bank of England said in its quarterly inflation report that while it expected inflation to drop below 2.0% by the end of 2012, there was a wider than usual divergence of views.
In the report, the central bank said, “There are significant uncertainties around the outlook for inflation. Chances of inflation being either above or below the target by the end of the forecast period are judged to be roughly equal”.
The pound was also up against the euro, with EUR/GBP tumbling 0.85% to hit 0.8542.
Earlier Wednesday, official U.S. data showed that the country’s trade deficit narrowed more-than-expected in September, while import price rose less-than-expected.