Investing.com - The pound was little changed against the U.S. dollar on Thursday, after the release of positive U.S. economic reports fuelled speculation that the Federal Reserve may start tapering stimulus sooner than expected.
GBP/USD hit 1.6068 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6049, adding 0.06%.
Cable was likely to find support at 1.5941, the low of October 17 and resistance at 1.6172, the high of October 17.
The greenback found support after a report showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October.
The Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. Analysts had expected the index to decline to 55.0 this month.
The new orders component of the index jumped to a nine year high of 74.3 from 58.9 in September.
A separate report showed that U.S. initial jobless claims fell in line with expectations last week. The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
The data came a day after the Fed left its USD85 billion-a-month asset purchase program in place following its monthly policy meeting, and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
In the U.K., industry data showed that U.K. house prices rose 1% this month, more than the expected 0.7% increase, after a 0.9% increase in September.
Sterling was sharply higher against the euro with EUR/GBP tumbling 0.99%, to hit 0.8479.
The euro came under pressure after data showing that inflation in the euro zone declined to the lowest level in four years in October fuelled fears that the European Central Bank may tighten monetary policy.
Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September. Economists had expected the rate of inflation to remain unchanged.
The rate is further below the European Central Bank's target of near but just below 2%.
A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.
GBP/USD hit 1.6068 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6049, adding 0.06%.
Cable was likely to find support at 1.5941, the low of October 17 and resistance at 1.6172, the high of October 17.
The greenback found support after a report showed that manufacturing activity in the Chicago region expanded at the fastest rate in 30 years in October.
The Chicago manufacturing purchasing managers’ index jumped to 65.9 in October from 55.7 in September. Analysts had expected the index to decline to 55.0 this month.
The new orders component of the index jumped to a nine year high of 74.3 from 58.9 in September.
A separate report showed that U.S. initial jobless claims fell in line with expectations last week. The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 25 declined by 10,000 to a seasonally adjusted 340,000.
The data came a day after the Fed left its USD85 billion-a-month asset purchase program in place following its monthly policy meeting, and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
In the U.K., industry data showed that U.K. house prices rose 1% this month, more than the expected 0.7% increase, after a 0.9% increase in September.
Sterling was sharply higher against the euro with EUR/GBP tumbling 0.99%, to hit 0.8479.
The euro came under pressure after data showing that inflation in the euro zone declined to the lowest level in four years in October fuelled fears that the European Central Bank may tighten monetary policy.
Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September. Economists had expected the rate of inflation to remain unchanged.
The rate is further below the European Central Bank's target of near but just below 2%.
A separate report showed that the euro zone unemployment rate was at a record high 12.2% in September.