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Forex - GBP/USD falls despite U.K. jobs data, BoE minutes weigh

Published 01/21/2015, 04:44 AM
Pound slips lower vs. dollar as BoE minutes show consensus on holding rates
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Investing.com - The pound fell against the U.S. dollar on Wednesday, re-approaching 18-month lows despite upbeat U.K. jobs data as the minutes of the Bank of England's latest meeting minutes showed a new consensus in favor of keeping interest rates on hold.

GBP/USD hit 1.5076 during European morning trade, the session low; the pair subsequently consolidated at 1.5106, shedding 0.25%.

Cable was likely to find support at 1.5032, the low of January 8 and an 18-month trough and resistance at 1.5236, the high of January 16.

In a report, the U.K. Office for National Statistics said that the rate of unemployment dipped to 5.8% in the three months to November from 6.0% in the previous three month-period and better than expectations for a reading of 5.9%.

The report also showed that the claimant count fell by 29,700 last month, compared to expectations for a decline of 25,000 people. November’s figure was revised to a drop of 29,600 people from a previously reported decline of 26,900.

Data also showed that the average earnings index rose 1.7% in the three months to November, meeting forecasts, after increasing by 1.4% in the three months to October.

Excluding bonuses, wages rose by 1.8% in the three months to November, below expectations for a gain of 1.9% and following a 1.6% increase in the three months to October.

Separately, the minutes of the BoE's January policy meeting showed that members voted unanimously to keep the asset puschase facility program on hold.

Members also voted unanimously to keep interest rates unchanged at a record-low 0.5%. During the five previous months, board members Martin Weale and Ian McCafferty had consistently voted to raise interest rates to 0.75%.

Sterling was lower against the euro, with EUR/GBP advancing 0.43% to 0.7658.

Sentiment on the single currency remained vulnerable as investors waited to see if the European Central Bank would embark on an outright quantitative easing program on Thursday.

Uncertainty over the outcome of Greek elections, due to be held on Sunday, with anti-bailout party Syriza leading in the polls also weighed.

Later in the day, the U.S. was to release data on building permits and housing starts.

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