Investing.com – The pound erased gains against the U.S. dollar on Wednesday, retreating from the daily high after government data showed that U.S. retail sales and producer prices were flat in August.
GBP/USD pulled back from 1.5815, the daily high, to hit 1.5768 during U.S. morning trade, slipping 0.08%.
Cable was likely to find support at 1.5705, the days low and an eight-month low and resistance at 1.5869, Tuesday’s high.
The Commerce Department said U.S. retail sales were flat in August, disappointing expectations for a 0.2% gain. July’s figure was revised down to a 0.3% gain from a previously reported 0.5% increase.
A separate report from the Department of Labor showed U.S. producer prices were unchanged in August, as lower oil prices offset rising food costs.
In the U.K., official data earlier showed that the number of people claiming unemployment benefits rose less-than-expected in August.
The Office for National Statistics said the number of people claiming jobless benefit rose by 20,300 last month, down from a rise of 33,700 in July and below forecasts for an increase of 35,000. The unemployment rate remained unchanged at 7.9%, in line with expectations.
However, the report showed that the number of people without work on the wider ILO measure showed its biggest rise in two years in the three months to July, as public sector employment fell sharply.
The report underlined the view that the Bank of England may implement stimulus measures to bolster growth, after a recent string of soft data highlighted concerns over the fragile economy.
The pound was also lower against the euro, with EUR/GBP slipping 0.09% to hit 0.8659.
Later Wednesday, Greek Prime Minister George Papandreou was expected to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy, to discuss developments in Greece.
GBP/USD pulled back from 1.5815, the daily high, to hit 1.5768 during U.S. morning trade, slipping 0.08%.
Cable was likely to find support at 1.5705, the days low and an eight-month low and resistance at 1.5869, Tuesday’s high.
The Commerce Department said U.S. retail sales were flat in August, disappointing expectations for a 0.2% gain. July’s figure was revised down to a 0.3% gain from a previously reported 0.5% increase.
A separate report from the Department of Labor showed U.S. producer prices were unchanged in August, as lower oil prices offset rising food costs.
In the U.K., official data earlier showed that the number of people claiming unemployment benefits rose less-than-expected in August.
The Office for National Statistics said the number of people claiming jobless benefit rose by 20,300 last month, down from a rise of 33,700 in July and below forecasts for an increase of 35,000. The unemployment rate remained unchanged at 7.9%, in line with expectations.
However, the report showed that the number of people without work on the wider ILO measure showed its biggest rise in two years in the three months to July, as public sector employment fell sharply.
The report underlined the view that the Bank of England may implement stimulus measures to bolster growth, after a recent string of soft data highlighted concerns over the fragile economy.
The pound was also lower against the euro, with EUR/GBP slipping 0.09% to hit 0.8659.
Later Wednesday, Greek Prime Minister George Papandreou was expected to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy, to discuss developments in Greece.