Investing.com - The pound extended gains against the U.S. dollar on Wednesday, following better-than-expected U.K. employment data and after the minutes of the Bank of England’s meeting showed that policymakers voted unanimously to leave policy unchanged this month.
GBP/USD hit 1.6158 during European morning trade, the pair’s highest since October 5; the pair subsequently consolidated at 1.6149, gaining 0.25%.
Cable was likely to find support at 1.6059, the session low and resistance at 1.6201, the high of October 4.
The Office for National Statistics said the number of people claiming jobless benefit fell by 4,000 last month, compared to expectations for a decline of 1,000.
The unemployment rate unexpectedly fell to 7.9% from 8.1% in August. Analysts’ had expected the jobless rate to remain unchanged.
The ONS also said average earnings rose by 1.7% in September, above expectations for a 1.6% gain.
Separately, the minutes of the BoE’s October meeting showed that policymakers voted in favor of leaving the size of the bank’s asset purchase program unchanged at GBP375 billion and interest rates at a record low 0.5% this month.
However, the minutes indicated that policymakers disagreed over whether more easing will be required when the current round of asset purchases ends later this month.
Overall market sentiment continued to remain supported after ratings agency Moody’s decided not to downgrade Spain’s credit rating to junk status, boosting risk appetite ahead of Thursday’s European Union summit.
Sterling trimmed losses against the euro following the data, with EUR/GBP pulling back from 0.8137; the pair’s highest since mid-June, to 0.8112, still up 0.11% for the day.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
GBP/USD hit 1.6158 during European morning trade, the pair’s highest since October 5; the pair subsequently consolidated at 1.6149, gaining 0.25%.
Cable was likely to find support at 1.6059, the session low and resistance at 1.6201, the high of October 4.
The Office for National Statistics said the number of people claiming jobless benefit fell by 4,000 last month, compared to expectations for a decline of 1,000.
The unemployment rate unexpectedly fell to 7.9% from 8.1% in August. Analysts’ had expected the jobless rate to remain unchanged.
The ONS also said average earnings rose by 1.7% in September, above expectations for a 1.6% gain.
Separately, the minutes of the BoE’s October meeting showed that policymakers voted in favor of leaving the size of the bank’s asset purchase program unchanged at GBP375 billion and interest rates at a record low 0.5% this month.
However, the minutes indicated that policymakers disagreed over whether more easing will be required when the current round of asset purchases ends later this month.
Overall market sentiment continued to remain supported after ratings agency Moody’s decided not to downgrade Spain’s credit rating to junk status, boosting risk appetite ahead of Thursday’s European Union summit.
Sterling trimmed losses against the euro following the data, with EUR/GBP pulling back from 0.8137; the pair’s highest since mid-June, to 0.8112, still up 0.11% for the day.
Later in the day, the U.S. was to publish government data on building permits and housing starts.