🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Forex - GBP/USD extends losses after strong U.S. data

Published 08/29/2013, 10:29 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound extends losses against the U.S. dollar on Thursday, as the release of strong U.S. economic reports added to expectations for the Federal Reserve to begin tapering its stimulus program as soon as next month.

GBP/USD hit 1.5483 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5490, slipping 0.23%.

Cable was likely to find support at 1.5475 and resistance at 1.5551, Wednesday’s high.

The Commerce Department said gross domestic product expanded at an annual rate of 2.5% in the three months to June, above expectations for growth of 2.2% and up from a preliminary estimate of 1.7%.

In a separate report, the Department of Labor said the number of people who filed for unemployment assistance fell to the lowest level since October 2007 last week.

The number of people filing for initial jobless benefits in the week ending August 23 fell by 6,000 to a seasonally adjusted 331,000, compared to forecasts for a decline of 5,000.

But sterling's losses were limited amid expectations that the Bank of England may raise interest rates much earlier than it has indicated, following a recent series of improved U.K. economic data.

The pound was also supported following reports that the U.K.'s Vodafone had resumed discussions on a plan for Verizon to buy out Vodafone's stake in U.S. joint venture Verizon Wireless.

Meanwhile, investors remained cautious amid concerns over prospects for a U.S.-led military strike against Syria’s government, following the alleged use of chemical weapons.

Sterling was higher against the euro with EUR/GBP retreating 0.62%, to hit 0.8538.

The single currency was pressured lower by speculation that Greece will require a third bailout package in 2014.

Earlier in the day, data showed that the number of unemployed people in Germany rose by a larger-than-forecast 7,000 in August, the first increase in three months, while the unemployment rate remained steady at 6.8%.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.