Investing.com - The pound erased losses against the U.S. dollar on Thursday, after the release of mixed U.S. economic reports followed Wednesday's indications that the Federal Reserve could begin tapering its bond purchases sooner than anticipated.
GBP/USD pulled away from 1.6073, the pair's lowest since Tuesday, to hit 1.6138 during U.S. morning trade, up 0.20%.
Cable was likely to find support at 1.5989, the low of November 14 and resistance at 1.6247, the high of October 25.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November, from 19.8 in October, expanding at the slowest pace in six months. Economists had expected the index to decline to 15.0.
Meanwhile, The Department of Labor said the said the number of people filing for initial jobless benefits last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.
A separate report showed that U.S. producer price inflation declined 0.02% in October, in line with expectations.
The data came a day after the minutes of the Fed’s October meeting indicated that the bank could start scaling back its stimulus program in the “coming months” if the economy continues to improve as expected.
The pound found some support after the Confederation of British Industry said its index of industrial order expectations rose to a reading of 11.0 this month from October’s reading of minus 4.0.
Analysts had expected the index to improve to 1.0 in November.
Sterling was higher against the euro with EUR/GBP edging down 0.11%, to hit 0.8337.
The euro strengthened after European Central Bank President Mario Draghi downplayed speculation that the ECB was actively considering whether to cut deposit rates into negative territory.
Earlier Thursday, the euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October.
However, the euro area's services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
Separate reports showed that manufacturing activity in Germany rose to a 29 month peak this month, while service sector activity rose to a four month high, but activity in the French private sector contracted for the first time in three months in November.
GBP/USD pulled away from 1.6073, the pair's lowest since Tuesday, to hit 1.6138 during U.S. morning trade, up 0.20%.
Cable was likely to find support at 1.5989, the low of November 14 and resistance at 1.6247, the high of October 25.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November, from 19.8 in October, expanding at the slowest pace in six months. Economists had expected the index to decline to 15.0.
Meanwhile, The Department of Labor said the said the number of people filing for initial jobless benefits last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.
A separate report showed that U.S. producer price inflation declined 0.02% in October, in line with expectations.
The data came a day after the minutes of the Fed’s October meeting indicated that the bank could start scaling back its stimulus program in the “coming months” if the economy continues to improve as expected.
The pound found some support after the Confederation of British Industry said its index of industrial order expectations rose to a reading of 11.0 this month from October’s reading of minus 4.0.
Analysts had expected the index to improve to 1.0 in November.
Sterling was higher against the euro with EUR/GBP edging down 0.11%, to hit 0.8337.
The euro strengthened after European Central Bank President Mario Draghi downplayed speculation that the ECB was actively considering whether to cut deposit rates into negative territory.
Earlier Thursday, the euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October.
However, the euro area's services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
Separate reports showed that manufacturing activity in Germany rose to a 29 month peak this month, while service sector activity rose to a four month high, but activity in the French private sector contracted for the first time in three months in November.