Forex - GBP/USD hits intra-day low after mixed U.S. data

Published 10/21/2010, 11:36 AM
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Investing.com – The pound was down against the U.S. dollar on Thursday, falling to an-intra low, following the release of mixed U.S. data on employment and manufacturing.

GBP/USD hit 1.5739 during European afternoon trade, an intra-day low; the pair subsequently consolidated at 1.5759, shedding 0.56%.

Cable was likely to find short-term support at 1.5649, Wednesday’s low and resistance at 1.5941, Tuesday’s high.

Earlier in the day, the Federal Reserve Bank of Philadelphia said that it’s manufacturing index rose less-than-expected in October, climbing to 1.0, after falling to 0.7 in September.

Analysts had expected the index to rise to 2.3 in October.

The report said that while the new orders index continued to suggest weak demand for manufactured goods and that the price of firm’s manufactured goods continued to decline, the survey suggested that optimism among the region’s manufacturing executives improved notably in October.

In a separate report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 16 fell to a seasonally adjusted 452K, after rising to a revised 475K in the preceding week.

Analysts had expected initial jobless claims to decline to 455K in the week ending October 16.

The pound was also down against the euro, with EUR/GBP surging 0.72% to hit 0.8876.

Also Thursday, official data showed that U.K. retail sales fell unexpectedly in September.

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