Investing.com - The pound remained close to a five-month high against the U.S. dollar on Thursday, as downbeat U.S. economic data weighed on the greenback while dampened expectations for further easing measures by the Bank of England continued to support demand for sterling.
GBP/USD hit 1.6077 during U.S. morning trade, the pair’s highest since November 14; the pair subsequently consolidated at 1.6056, rising 0.22%.
Cable was likely to find support at 1.5978, the low of April 2 and resistance at 1.6077, the day’s high.
Industry data showed that existing home sales in the U.S. fell to 4.48 million units in March, confounding expectations for a modest increase to 4.62 million units.
Existing home sales in February were revised up to 4.60 million units from a previously reported 4.59 million.
A separate report by the Federal Reserve Bank of Philadelphia said that its manufacturing index declined to 8.5 in April from March’s reading of 12.5. Analysts had expected the index to ease down to 12.0 in April.
The data came after the U.S. Department of Labor said that the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
Meanwhile, the pound remained supported as investors pared back expectations for additional monetary stimulus measures from the Bank of England after Wednesday’s minutes of the bank’s April meeting showed that just one policymaker voted in favor of additional easing this month.
Additionally, official data showing that the number of people claiming unemployment benefits in the U.K. rose less-than-expected last month, while the unemployment rate ticked down unexpectedly, fuelling hopes that the economic recovery is gaining traction.
Sterling was trading within striking distance of a 19-month high against the euro, with EUR/GBP easing 0.04% to hit 0.8187.
Also Thursday, Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds remained below the 6% level.
However, the results failed to ease concerns over the outlook for Spain, as Prime Minister Mariano Rajoy's government attempts to reduce one of the largest deficits in the euro zone, amid fears that the economy is entering a recession.
GBP/USD hit 1.6077 during U.S. morning trade, the pair’s highest since November 14; the pair subsequently consolidated at 1.6056, rising 0.22%.
Cable was likely to find support at 1.5978, the low of April 2 and resistance at 1.6077, the day’s high.
Industry data showed that existing home sales in the U.S. fell to 4.48 million units in March, confounding expectations for a modest increase to 4.62 million units.
Existing home sales in February were revised up to 4.60 million units from a previously reported 4.59 million.
A separate report by the Federal Reserve Bank of Philadelphia said that its manufacturing index declined to 8.5 in April from March’s reading of 12.5. Analysts had expected the index to ease down to 12.0 in April.
The data came after the U.S. Department of Labor said that the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
Meanwhile, the pound remained supported as investors pared back expectations for additional monetary stimulus measures from the Bank of England after Wednesday’s minutes of the bank’s April meeting showed that just one policymaker voted in favor of additional easing this month.
Additionally, official data showing that the number of people claiming unemployment benefits in the U.K. rose less-than-expected last month, while the unemployment rate ticked down unexpectedly, fuelling hopes that the economic recovery is gaining traction.
Sterling was trading within striking distance of a 19-month high against the euro, with EUR/GBP easing 0.04% to hit 0.8187.
Also Thursday, Spain raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds remained below the 6% level.
However, the results failed to ease concerns over the outlook for Spain, as Prime Minister Mariano Rajoy's government attempts to reduce one of the largest deficits in the euro zone, amid fears that the economy is entering a recession.