Investing.com - The pound pared gains against the U.S. dollar on Thursday, following disappointing U.K. retail sales data for November and amid growing uncertainty over the U.S. fiscal cliff.
GBP/USD eased back from the session high of 1.6271 to hit 1.6257 during European morning trade, up 0.07% for the day.
Cable was likely to find support at 1.6193, Tuesday’s low and resistance at 1.6305, Wednesday’s high and a three-month high.
The Office for National Statistics said U.K. retail sales were flat in November, compared to expectations for a 0.3% increase.
Retail sales for October were revised down to a 0.7% decline from a previously reported fall of 0.6%, the largest drop in six months.
Year-on-year, retail sales rose at an annualized rate of 0.9% in November, below expectations for a 1.5% increase, after rising at a revised rate of 0.8% in the preceding month.
Meanwhile, market sentiment was hit by growing doubts over whether a deal to avoid the U.S. fiscal cliff will be reached ahead of the January 1 deadline, fuelling concern that automatic tax hikes and spending cuts will be triggered.
Sterling was little changed against the euro, with EUR/GBP dipping 0.04% to 0.8137.
The U.S. was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and data on manufacturing activity in Philadelphia later in the trading day. In addition, the U.S. was to publish industry data on existing home sales.
GBP/USD eased back from the session high of 1.6271 to hit 1.6257 during European morning trade, up 0.07% for the day.
Cable was likely to find support at 1.6193, Tuesday’s low and resistance at 1.6305, Wednesday’s high and a three-month high.
The Office for National Statistics said U.K. retail sales were flat in November, compared to expectations for a 0.3% increase.
Retail sales for October were revised down to a 0.7% decline from a previously reported fall of 0.6%, the largest drop in six months.
Year-on-year, retail sales rose at an annualized rate of 0.9% in November, below expectations for a 1.5% increase, after rising at a revised rate of 0.8% in the preceding month.
Meanwhile, market sentiment was hit by growing doubts over whether a deal to avoid the U.S. fiscal cliff will be reached ahead of the January 1 deadline, fuelling concern that automatic tax hikes and spending cuts will be triggered.
Sterling was little changed against the euro, with EUR/GBP dipping 0.04% to 0.8137.
The U.S. was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and data on manufacturing activity in Philadelphia later in the trading day. In addition, the U.S. was to publish industry data on existing home sales.