Forex - GBP/USD near session highs after U.S., U.K. data

Published 10/25/2012, 09:02 AM
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Investing.com - The pound remained close to session highs against the U.S. dollar on Thursday, following upbeat U.S. data on durable goods and jobless claims and stronger-than-expected U.K. data on third quarter growth earlier in the session.

USD/GBP hit 1.6144 during European afternoon trade, the pair’s highest since October 18; the pair subsequently consolidated at 1.6134, gaining 0.60%.

Cable was likely to find support at 1.6025, the session low and resistance at 1.6216, the high of October 5,

The Commerce Department said U.S. durable goods orders, which include transportation items, jumped by a seasonally adjusted 9.9% in September, compared to expectations for a 7.1% gain.

Durable goods for August were revised to a 13.1% drop from a previously reported decline of 13.2%.

Core durable goods orders, excluding volatile transportation items, rose by a seasonally adjusted 2.0% last month, beating expectations for a 0.8% gain.

Separately, the Labor Department said the number of people who filed for unemployment assistance in the U.S. last week fell to 369,000, from 392,000 the previous week, compared to expectations for a decrease to 370,000.

The previous week’s figure was revised up to 392,000 from a previously reported 388,000.

Demand for the pound was boosted earlier after official data showed that the U.K. exited a recession in the third quarter, with the economy growing at the fastest rate since the third quarter of 2007.

The Office of National Statistics said U.K. gross domestic product expanded by 1.0% in the three months October, pulling the economy out of the longest double dip recession since 1955.

Economists had forecast growth of 0.6%, following a 0.4% contraction in the second quarter.

The increase in third quarter growth was boosted by ticket sales for the London Olympics, as well as a rebound following an extra public holiday for the Queen’s Jubilee in the second quarter.

The pound was higher against the euro, with EUR/GBP down 0.53% to 0.8045.

Later Thursday, the U.S. was to release official data on pending home sales.



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