Investing.com - The pound pulled back from seven-month highs against the dollar on Thursday ahead of testimony on inflation and the economic outlook by Bank of England policymakers later in the session.
GBP/USD hit 1.5787 during European morning trade, the session low; the pair subsequently consolidated at 1.5794, shedding 0.15%.
Cable was likely to find support at 1.5717, Wednesday’s low and resistance at 1.5830, the session high and the highest since early February.
Sterling rallied against the dollar and the euro on Wednesday after data showed that the U.K. unemployment rate unexpectedly declined to 7.7% in July.
The data reinforced expectations that the BoE would raise interest rates sooner than it has indicated. BoE Governor Mark Carney said last month the bank would keep rates on hold until the unemployment rate falls below 7%, something the bank does not see for another three years.
Investors were cautious ahead of testimony on the inflation outlook and the economy to Parliament’s Treasury Select Committee by Carney and BoE policymakers later in the session.
The dollar remained under pressure after data late last week showed that the U.S. economy added slightly fewer jobs than expected in August.
The soft data raised some doubts over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Sterling was steady against the euro, with EUR/GBP inching up 0.04% to 0.8417.
The euro zone was to release data on industrial production later in the day and investors were awaiting a speech by European Central Bank President Mario Draghi. The U.S. was to release data on jobless claims.
GBP/USD hit 1.5787 during European morning trade, the session low; the pair subsequently consolidated at 1.5794, shedding 0.15%.
Cable was likely to find support at 1.5717, Wednesday’s low and resistance at 1.5830, the session high and the highest since early February.
Sterling rallied against the dollar and the euro on Wednesday after data showed that the U.K. unemployment rate unexpectedly declined to 7.7% in July.
The data reinforced expectations that the BoE would raise interest rates sooner than it has indicated. BoE Governor Mark Carney said last month the bank would keep rates on hold until the unemployment rate falls below 7%, something the bank does not see for another three years.
Investors were cautious ahead of testimony on the inflation outlook and the economy to Parliament’s Treasury Select Committee by Carney and BoE policymakers later in the session.
The dollar remained under pressure after data late last week showed that the U.S. economy added slightly fewer jobs than expected in August.
The soft data raised some doubts over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Sterling was steady against the euro, with EUR/GBP inching up 0.04% to 0.8417.
The euro zone was to release data on industrial production later in the day and investors were awaiting a speech by European Central Bank President Mario Draghi. The U.S. was to release data on jobless claims.