Investing.com - The pound erased losses against the U.S. dollar on Thursday, ahead of a Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, although downbeat U.K. retail sales released earlier in the day limited gains.
GBP/USD pulled away from 1.5989, the session low, to hit 1.6085 during U.S. morning trade, adding 0.18%.
Cable was likely to find support at 1.5950, the low of November 5 and resistance at 1.6028, the high of October 28.
The greenback weakened after Yellen said, in a prepared statement released late Wednesday, that the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Meanwhile, the U.S. Labor Department on Thursday said the number of individuals filing for initial jobless benefits last week declined by 2,000 to a seasonally adjusted 339,000. Analysts had expected U.S. jobless claims to fall by 11,000.
A separate report showed that the U.S. trade deficit widened to a seasonally adjusted USD41.8 billion in September from a deficit of USD38.7 billion in August, whose figure was revised from a previously reported deficit of USD38.8 billion.
Sterling came under pressure earlier, after the Office for National Statistics said retail sales fell 0.7% in October, against expectations for a 0.1% gain. Retail sales rose by 0.6% in September.
Retail sales were up 1.8% on an annualized basis, well below expectations for a 3.1% gain, after rising at an annual rate of 2% in September.
Core retail sales, which exclude automobile sales, declined 0.6% in October, worse than forecasts for a 0.2% drop, after increasing 0.8% in the preceding month.
The weak data came one day after the Bank of England brought forward the date it expects the unemployment rate to hit the 7% threshold at which it will consider raising rates and revised up its forecast for growth in its quarterly inflation report.
The BoE said it now expects economic growth of 1.6% this year, up from 1.4% in August and growth of 2.8% in 2014, up from 2.5%. The bank still expects growth of 2.3% in 2015.
Sterling was higher against the euro, with EUR/GBP retreating 0.33% to 0.8372.
Also Thursday, data showed that the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession. Economist had forecast quarter-on-quarter growth of 0.2%.
The euro zone economy contracted at an annual rate of 0.4% in the third quarter, worse than expectations for a 0.3% contraction, after shrinking at an annual rate of 0.6% in the previous quarter.
GBP/USD pulled away from 1.5989, the session low, to hit 1.6085 during U.S. morning trade, adding 0.18%.
Cable was likely to find support at 1.5950, the low of November 5 and resistance at 1.6028, the high of October 28.
The greenback weakened after Yellen said, in a prepared statement released late Wednesday, that the job market and economy are "performing far short of their potential" and there is "more work to do" on recovery.
Meanwhile, the U.S. Labor Department on Thursday said the number of individuals filing for initial jobless benefits last week declined by 2,000 to a seasonally adjusted 339,000. Analysts had expected U.S. jobless claims to fall by 11,000.
A separate report showed that the U.S. trade deficit widened to a seasonally adjusted USD41.8 billion in September from a deficit of USD38.7 billion in August, whose figure was revised from a previously reported deficit of USD38.8 billion.
Sterling came under pressure earlier, after the Office for National Statistics said retail sales fell 0.7% in October, against expectations for a 0.1% gain. Retail sales rose by 0.6% in September.
Retail sales were up 1.8% on an annualized basis, well below expectations for a 3.1% gain, after rising at an annual rate of 2% in September.
Core retail sales, which exclude automobile sales, declined 0.6% in October, worse than forecasts for a 0.2% drop, after increasing 0.8% in the preceding month.
The weak data came one day after the Bank of England brought forward the date it expects the unemployment rate to hit the 7% threshold at which it will consider raising rates and revised up its forecast for growth in its quarterly inflation report.
The BoE said it now expects economic growth of 1.6% this year, up from 1.4% in August and growth of 2.8% in 2014, up from 2.5%. The bank still expects growth of 2.3% in 2015.
Sterling was higher against the euro, with EUR/GBP retreating 0.33% to 0.8372.
Also Thursday, data showed that the euro zone economy expanded by 0.1% in the three months to September, slowing from the 0.3% growth achieved in the second quarter when the euro zone exited a recession. Economist had forecast quarter-on-quarter growth of 0.2%.
The euro zone economy contracted at an annual rate of 0.4% in the third quarter, worse than expectations for a 0.3% contraction, after shrinking at an annual rate of 0.6% in the previous quarter.