Forex - GBP/USD extends losses, focus on Greek debt talks

Published 02/02/2012, 10:33 AM
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Investing.com - The pound extended losses against the U.S. dollar on Thursday, as investors remained jittery over the outcome of protracted Greek debt talks while markets eyed a testimony by Federal Reserve Chairman Ben Bernanke later in the day.

GBP/USD hit 1.5809 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5805, edging down 0.18%.

Cable was likely to find support at 1.5753, the low of October 21 and resistance at 1.5882, Wednesday’s high.

Earlier in the day, European Union Economic and Monetary Affairs Commissioner Olli Rehn said negotiations on a debt restructuring deal for Greece were at a very advanced stage and were expected to conclude in the coming days.

The final package is expected to be approved at an extraordinary meeting of EU finance ministers on Monday.

In the U.S., the Department of Labor said earlier that the number of individuals filing for initial jobless benefits fell last week to 367,000, beating expectations for a decline to 373,000.

The previous week’s figure was revised up to 379,000 from 377,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 12 of the past 14 weeks.

Elsewhere, the pound was steady against the euro with EUR/GBP inching 0.02% lower, to hit 0.8310.

Earlier Thursday, data showed that the U.K. construction sector expanded in January, albeit at a weaker-than-forecast pace, as growth in new orders slowed and some existing contracts were completed.

The Markit construction Purchasing Managers' Index fell to 51.4 from a reading of 53.2 in December. Economists had expected the index to ease down to 52.9 last month.



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