Investing.com –The pound jumped to a five-week high against the U.S. dollar on Thursday, as demand for riskier assets was boosted amid signs that European Union officials were moving closer to agreeing on a strategy to deal with Greece’s debt problems.
GBP/USD hit 1.6302 during early U.S. trade, the pair’s highest since June 15; the pair subsequently consolidated at 1.6299, surging 0.90%.
Cable was likely to find support at 1.6068, Wednesday’s low and resistance at 1.6382, the high of June 15.
According to a draft outline of proposals emerging from a summit of EU leaders in Brussels, the euro zone would agree to reduce the interest rate paid by indebted countries on loans from the region’s bailout fund, the European Financial Stability Facility and to extend loan maturities.
The EFSF could also be given authority to lend to governments to recapitalize banks, taking pressure off the European Central Bank.
The dollar also weakened after the U.S. Department of Labor said the number of people who filed for unemployment assistance rose more-than-expected last week. Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labor Department said.
A separate report showed that manufacturing activity in the Philadelphia region rose less-than-expected in July.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.40% to hit 0.8837.
Also Thursday, official data showed that retail sales in the U.K. rose slightly more-than-expected in June, after falling sharply in May.
The Office for National Statistics said retail sales rose 0.7% last month, slightly above expectations for a 0.6% gain.
GBP/USD hit 1.6302 during early U.S. trade, the pair’s highest since June 15; the pair subsequently consolidated at 1.6299, surging 0.90%.
Cable was likely to find support at 1.6068, Wednesday’s low and resistance at 1.6382, the high of June 15.
According to a draft outline of proposals emerging from a summit of EU leaders in Brussels, the euro zone would agree to reduce the interest rate paid by indebted countries on loans from the region’s bailout fund, the European Financial Stability Facility and to extend loan maturities.
The EFSF could also be given authority to lend to governments to recapitalize banks, taking pressure off the European Central Bank.
The dollar also weakened after the U.S. Department of Labor said the number of people who filed for unemployment assistance rose more-than-expected last week. Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labor Department said.
A separate report showed that manufacturing activity in the Philadelphia region rose less-than-expected in July.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.40% to hit 0.8837.
Also Thursday, official data showed that retail sales in the U.K. rose slightly more-than-expected in June, after falling sharply in May.
The Office for National Statistics said retail sales rose 0.7% last month, slightly above expectations for a 0.6% gain.