Investing.com – The pound pulled away from a three-week low against the U.S. dollar on Thursday, after data showed that U.S. housing starts and initial jobless claims came in better-than-expected.
GBP/USD retreated from 1.6079, the pair’s lowest since May 24, to hit 1.6145 during early U.S. trade, still down 0.30% on the day.
Cable was likely to find short-term support at 1.6056, the low of May 24 and a seven-week low and resistance at 1.6382, Wednesday’s high.
The Commerce Department said housing starts rose 3.5% to a seasonally adjusted annual rate of 560,000 units in May, outstripping expectations for an increase to 550,000.
In a separate report, the Labor Department said the number of people filing for initial jobless benefits last week fell to a seasonally adjusted 414K, surpassing expectations for a decline to 420K.
The pound weakened earlier after official data showed that retail sales in the U.K. fell more than twice as fast as expected in May, due in large part to the biggest monthly decline in food store sales since June 2008.
The Office for National Statistics said retail sales volumes, including automotive fuel, fell 1.4% last month, more than reversing April's 1.1% gain and well below forecasts for a fall of 0.5%. It was the biggest fall since January 2010.
The pound was also down against the euro, with EUR/GBP rising 0.21% to hit 0.8744.
Also Thursday, the Federal Reserve Bank of Philadelphia said that its manufacturing index plummeted to -7.7 in June, compared to May’s reading of 3.9.
Analysts had expected the index to increase to 7.0 in June. It was the first negative reading since September 2010.
GBP/USD retreated from 1.6079, the pair’s lowest since May 24, to hit 1.6145 during early U.S. trade, still down 0.30% on the day.
Cable was likely to find short-term support at 1.6056, the low of May 24 and a seven-week low and resistance at 1.6382, Wednesday’s high.
The Commerce Department said housing starts rose 3.5% to a seasonally adjusted annual rate of 560,000 units in May, outstripping expectations for an increase to 550,000.
In a separate report, the Labor Department said the number of people filing for initial jobless benefits last week fell to a seasonally adjusted 414K, surpassing expectations for a decline to 420K.
The pound weakened earlier after official data showed that retail sales in the U.K. fell more than twice as fast as expected in May, due in large part to the biggest monthly decline in food store sales since June 2008.
The Office for National Statistics said retail sales volumes, including automotive fuel, fell 1.4% last month, more than reversing April's 1.1% gain and well below forecasts for a fall of 0.5%. It was the biggest fall since January 2010.
The pound was also down against the euro, with EUR/GBP rising 0.21% to hit 0.8744.
Also Thursday, the Federal Reserve Bank of Philadelphia said that its manufacturing index plummeted to -7.7 in June, compared to May’s reading of 3.9.
Analysts had expected the index to increase to 7.0 in June. It was the first negative reading since September 2010.