Investing.com - The pound hit session highs against the dollar on Wednesday, following the release of a stronger than expected U.K. jobs report, but gains were held in check as concerns over the looming U.S. debt ceiling deadline weighed.
GBP/USD hit 1.6058 during European morning trade, the highest since October 9; the pair subsequently consolidated at 1.6017, gaining 0.13%.
Cable was likely to find support at 1.5913, Tuesday’s low and resistance at 1.6120, the high of October 9.
Sterling initially touched session highs after data showed that the number of people claiming unemployment benefits in the U.K. posted the largest decline since June 1997 in September.
The Office for National Statistics said that the U.K. claimant count fell by 41,700 in September, outstripping expectations for a decline of 25,000 people.
The previous month’s figure was revised to a drop of 41,600 people from a previously reported decrease of 32,600.
The rate of unemployment held steady at 7.7% in August, in line with expectations and unchanged from July.
The ONS said the average earnings index rose 0.7% in August, below expectations for a 1% increase, after rising by 1.1% in the previous month.
Investors remained cautious amid hopes that politicians in Washington could hammer out a last minute deal to avert a U.S. default ahead of a looming deadline.
Ratings agency Fitch placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday, saying the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were to continue negotiations aimed at ending the fiscal impasse on Wednesday, after a last minute deal put forward by House Republicans collapsed.
Elsewhere, sterling was slightly higher against the euro, with EUR/GBP dipping 0.07% to 0.8448.
The euro zone was to produce reports on consumer prices and the trade balance later in the day.
GBP/USD hit 1.6058 during European morning trade, the highest since October 9; the pair subsequently consolidated at 1.6017, gaining 0.13%.
Cable was likely to find support at 1.5913, Tuesday’s low and resistance at 1.6120, the high of October 9.
Sterling initially touched session highs after data showed that the number of people claiming unemployment benefits in the U.K. posted the largest decline since June 1997 in September.
The Office for National Statistics said that the U.K. claimant count fell by 41,700 in September, outstripping expectations for a decline of 25,000 people.
The previous month’s figure was revised to a drop of 41,600 people from a previously reported decrease of 32,600.
The rate of unemployment held steady at 7.7% in August, in line with expectations and unchanged from July.
The ONS said the average earnings index rose 0.7% in August, below expectations for a 1% increase, after rising by 1.1% in the previous month.
Investors remained cautious amid hopes that politicians in Washington could hammer out a last minute deal to avert a U.S. default ahead of a looming deadline.
Ratings agency Fitch placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday, saying the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were to continue negotiations aimed at ending the fiscal impasse on Wednesday, after a last minute deal put forward by House Republicans collapsed.
Elsewhere, sterling was slightly higher against the euro, with EUR/GBP dipping 0.07% to 0.8448.
The euro zone was to produce reports on consumer prices and the trade balance later in the day.