Forex - GBP/USD holds steady, close to 1-week high

Published 11/01/2012, 11:25 AM
Updated 11/01/2012, 11:27 AM
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Investing.com - The pound held steady against the U.S. dollar on Thursday, trading close to a one-week high, as sentiment found support after upbeat U.S. employment data, although investors remained cautious ahead of Friday's U.S. nonfarm payrolls report.

GBP/USD hit 1.6175 during U.S. morning trade, the pair's highest since October 17; the pair subsequently consolidated at 1.6131, easing up 0.01%.

Cable was likely to find support at 1.6068, Wednesday's low and resistance at 1.6217, the high of October 5.

The Department of Labor said the number of individuals filing for initial jobless benefits fell to 363,000 last week from 372,000 the previous week, compared to expectations for a decline to 370,000.

The previous week’s figure was revised up to 372,000 from a previously reported 369,000.

The data came on the heels of a report showing that U.S. private sector employment increased more-than-expected in October.

Payroll processing firm ADP said the U.S. private sector added 158,000 jobs this month, surpassing expectations for an increase of 135,000.

The previous month’s figure was revised down to a gain of 88,200 from a previously reported increase of 162,000.

In the U.K., data earlier showed that the manufacturing purchasing managers’ index fell to 47.5 in October from a reading of 48.4 in September, compared to expectations for a dip to 48.1.

The data came after a report by U.K. mortgage lender Nationwide showed that house prices rose 0.6% in October, better than expectations for a 0.2% increase.

Elsewhere, sterling was higher against the euro with EUR/GBP falling 0.14%, to hit 0.8023.

Also Thursday, the Institute of Supply Management said that its index of manufacturing activity in the U.S. declined unexpectedly in October, ticking down to 51.00 from a reading of 51.30 the previous month.


Analysts had expected the index to improve to 51.50 in October.


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