Investing.com - The pound extended losses against the U.S. dollar on Thursday, falling to a three-day low as renewed concerns over the health of Europe’s banking sector overshadowed positive U.S. employment data.
GBP/USD hit 1.5476 during U.S. morning trade, the pair’s lowest since January 2; the pair subsequently consolidated at 1.5486, dropping 0.85%.
Cable was likely to find support at 1.5400, the low of December 30 and resistance at 1.5628, the day’s high.
U.S. payroll processing firm ADP said earlier that non-farm private employment posted the largest monthly gain since December 2010 last month, increasing by 325,000, blowing past expectations for an increase of 175,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, dropping by 15,000 to a seasonally adjusted 372,000, beating expectations for a decline to 375,000.
Data also showed that service sector activity in the U.S. rose less-than-expected in December.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 52.6 in December from a reading of 52.0 the previous month.
Analysts had expected the index to rise to 53.0 in December.
But market sentiment remained under pressure after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Elsewhere, sterling was higher against the euro with EUR/GBP shedding 0.19%, to hit 0.8271.
Also Thursday, a report showed that service sector activity in the U.K. unexpectedly accelerated to a five-month high in December, easing concerns that growth in the country's economy is faltering.
Markit’s U.K. service sector purchasing managers' index rose to 54.0 last month, its highest level since July, confounding expectations for a decline to 51.6.
GBP/USD hit 1.5476 during U.S. morning trade, the pair’s lowest since January 2; the pair subsequently consolidated at 1.5486, dropping 0.85%.
Cable was likely to find support at 1.5400, the low of December 30 and resistance at 1.5628, the day’s high.
U.S. payroll processing firm ADP said earlier that non-farm private employment posted the largest monthly gain since December 2010 last month, increasing by 325,000, blowing past expectations for an increase of 175,000.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, dropping by 15,000 to a seasonally adjusted 372,000, beating expectations for a decline to 375,000.
Data also showed that service sector activity in the U.S. rose less-than-expected in December.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 52.6 in December from a reading of 52.0 the previous month.
Analysts had expected the index to rise to 53.0 in December.
But market sentiment remained under pressure after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Elsewhere, sterling was higher against the euro with EUR/GBP shedding 0.19%, to hit 0.8271.
Also Thursday, a report showed that service sector activity in the U.K. unexpectedly accelerated to a five-month high in December, easing concerns that growth in the country's economy is faltering.
Markit’s U.K. service sector purchasing managers' index rose to 54.0 last month, its highest level since July, confounding expectations for a decline to 51.6.