Investing.com - The pound dropped against the dollar on Thursday after data revealed weekly U.S. initial jobless claims continue to decline, while a drop in factory activity in China sparked safe-haven demand for the greenback, which came at sterling's expense.
GBP/USD hit 1.6442 during U.S. trading, down 0.72%, up from a session low of 1.6414 and off a high of 1.6604.
Cable was likely to find support at 1.6407, the low of Dec. 27 and resistance at 1.6604, the earlier high.
The greenback strengthened earlier even after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease by snatching up dollar positions on expectations for the Federal Reserve to continue scaling down stimulus programs such as monthly bond purchases.
Elsewhere, the Institute for Supply Management reported that its U.S. purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.
Risk sentiment took a hit after a report showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November, which bolstered the greenback's safe-haven appeal.
The data came a day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
Meanwhile across the Atlantic, London-based Markit Economics reported that its U.K. manufacturing purchasing managers' index fell to 57.3 in December from 58.1 in November, missing analysts' forecasts for a 58.0 reading last month.
Sterling was lower against the euro, with EUR/GBP up 0.10% to 0.8316, and down against the yen, with GBP/JPY down 1.22% at 172.22.
GBP/USD hit 1.6442 during U.S. trading, down 0.72%, up from a session low of 1.6414 and off a high of 1.6604.
Cable was likely to find support at 1.6407, the low of Dec. 27 and resistance at 1.6604, the earlier high.
The greenback strengthened earlier even after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease by snatching up dollar positions on expectations for the Federal Reserve to continue scaling down stimulus programs such as monthly bond purchases.
Elsewhere, the Institute for Supply Management reported that its U.S. purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.
Risk sentiment took a hit after a report showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November, which bolstered the greenback's safe-haven appeal.
The data came a day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
Meanwhile across the Atlantic, London-based Markit Economics reported that its U.K. manufacturing purchasing managers' index fell to 57.3 in December from 58.1 in November, missing analysts' forecasts for a 58.0 reading last month.
Sterling was lower against the euro, with EUR/GBP up 0.10% to 0.8316, and down against the yen, with GBP/JPY down 1.22% at 172.22.