Investing.com - The pound rose against the dollar on Thursday despite upbeat data out of the U.S., as uncertainty over when interest rates will rise in the U.S. sent sterling soaring to highs against the greenback not seen since late 2008.
In U.S. trading on Thursday, GBP/USD was trading up 0.28% at 1.7041, up from a session low of 1.6981 and off a high of 1.7063.
Cable was likely to find support at 1.6924, Wednesday's low, and resistance at 1.7197, the high from Oct. 21, 2008.
The Federal Reserve on Wednesday left benchmark interest rates unchanged at 0.00-0.25% and cut its monthly bond-buying program to $35 billion from $45 billion in a widely expected move.
Still, the dollar weakened after the Fed didn't hint at how much time will elapse after its monthly stimulus program concludes and when interest-rate hikes begin, with investors concluding that the Fed will take its time to tighten policy.
"It likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored," the Fed said in its Wednesday policy statement.
Elsewhere, U.S. data beat expectations.
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index rose to an eight-month high of 17.8 in June from 15.4 in May. Analysts had expected the index to dip to 14.0 in June.
The data came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 14 declined by 6,000 to 312,000 from the previous week’s revised total of 318,000. Analysts had expected jobless claims to fall by 4,000 to 314,000 last week.
Meanwhile in the U.K., data showing that retail sales fell in May, declining for the first time since January, though markets shrugged off the news.
U.K. retail sales decreased by 0.5% last month, in line with forecasts, official data showed, and were 3.9% higher on a year-over-year basis. The data did little to alter expectations that the Bank of England will raise interest rates sooner than other central banks.
Elsewhere, sterling was up against the euro, with EUR/GBP down 0.11% at 0.7992, and up against the yen, with GBP/JPY up 0.25% at 173.60.
On Friday, the U.K. is to release data on public-sector net borrowing.