Investing.com - The pound held gains against the U.S. dollar on Thursday, after official data showed that the number of people making initial jobless claims in the U.S. fell far more than forecast last week.
GBP/USD hit 1.6054 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.6040, up 0.22%.
Cable was likely to find support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6105, the high of September 12.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
The previous week’s figure was revised up to 369,000 from a previously reported 367,000.
The pound found support earlier in the session after a ratings downgrade on Spain by Standard & Poor’s fuelled hopes that the country would be forced to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
The pound was lower against the euro, with EUR/GBP up 0.19% to 0.8059.
Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.
GBP/USD hit 1.6054 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.6040, up 0.22%.
Cable was likely to find support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6105, the high of September 12.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
The previous week’s figure was revised up to 369,000 from a previously reported 367,000.
The pound found support earlier in the session after a ratings downgrade on Spain by Standard & Poor’s fuelled hopes that the country would be forced to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
The pound was lower against the euro, with EUR/GBP up 0.19% to 0.8059.
Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.