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Forex - GBP/USD pares losses after U.K. unemployment data

Published 12/17/2014, 04:52 AM
Pound pulls away from session lows vs. dollar after U.K. data
GBP/USD
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EUR/GBP
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Investing.com - The pound pared losses against the U.S. dollar on Wednesday, after data showed that the U.K. claimant count change fell more than anticipated last month, while the unemployment rate remained unexpectedly unchanged in in the three months to October.

GBP/USD pulled away from 1.5678, the session low, to hit 1.5720 during European morning trade, still down 0.19%.

Cable was likely to find support at 1.5599, the low of December 15 and resistance at 1.5828, the high of November 27.

The U.K. Office for National Statistics reported on Wednesday that the unemployment rate held steady at 6.0% in the three months to October, compared to expectations for a tick down to 5.9%.

The number of people in the U.K. claiming unemployment benefits fell by 26,900 last month, compared to expectations for a decline of 21,200.

October’s figure was revised to a drop of 25,100 people from a previously reported decline of 20,400.

The report also said that average earnings, excluding bonuses, rose by 1.6%, ahead of forecasts for a gain of 1.5%, while salary growth including bonuses rose by a stronger than forecast 1.4%

Separately, the minutes of the Bank of England's December policy meeting showed that members voted unanimously to keep the asset puschase facility program on hold.

However, members Martin Weale and Ian McCafferty voted for the fifth consecutive time to raise interest rates to 0.75% from a record-low 0.5%.

Meanwhile, investors remained cautious ahead of the Federal Reserve's policy statement due later in the day, as ongoing speculation over the prospects for a U.S. rate hike next year have fuelled expectations that the U.S. central bank could adjust its forward guidance.

Sterling was higher against the euro, with EUR/GBP shedding 0.23% to 0.7926.

Later in the day, the U.S. was to release data on consumer inflation and the current account.

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