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Forex - GBP/USD almost unchanged, near 11-month lows

Published 10/16/2014, 04:38 AM
Pound holds steady close to 11-month trough vs. dollar
GBP/USD
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EUR/GBP
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Investing.com - The pound was almost unchanged against the U.S. dollar on Thursday, still hovering close to an 11-month low as the greenback recovered from the previous day's sharp losses due to weak U.S. economic reports.

GBP/USD hit 1.5951 during European morning trade, the session low; the pair subsequently consolidated at 1.6002, easing 0.11%.

Cable was likely to find support at 1.5873, Wednesday's low and an 11-month low and resistance at 1.6103, the high of October 14.

The greenback came under broad selling pressure on Wednesday after a string of disappointing U.S. data further dampened expectations for an early rate hike by the Federal Reserve.

Official data showed that U.S. retail sales fell 0.3% last month, more than the expected 0.1% slip, while core retail sales, which exclude automobiles, dropped 0.2% in September, confounding expectations for a 0.3% gain.

A separate report showed that U.S. producer price inflation slipped 0.1% last month, disappointing expectations for a 0.1% rise, while the Federal Reserve of New York reported that its manufacturing index tumbled to a six-month low of 6.2 in October from a reading of 27.5 the previous month.

The pound showed little reaction to data on Wednesday showing that the U.K. claimant count declined less than expected in August, although the unemployment rate fell to the lowest level since October 2008.

Sterling was higher against the euro, with EUR/GBP shedding 0.24% to 0.7995.

Later in the day, the U.S. was to release the weekly report on initial jobless claims as well as data on industrial production and manufacturing activity in the Philadelphia region.

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