Investing.com - The pound ticked up and down between small gains and losses against the U.S. dollar on Thursday, after the release of a string of positive economic data reinforced the view that the U.S. economic recovery is gaining momentum.
GBP/USD hit 1.5635 during U.S. morning trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.5672, dipping 0.02%.
Cable was likely to find support at 1.5602, the low of March 12 and a five-week low and resistance at 1.5743, Wednesday’s high.
Earlier Thursday, the Department of Labor said number of people who filed for unemployment assistance in the U.S. last week fell back to a four-year low of 351,000, beating expectations for a decline to 356,000.
Separate reports showed that manufacturing activity in the Philadelphia region expanded at a faster than forecast rate in March, rising to the highest level in 11 months, while manufacturing activity in New York improved unexpectedly, climbing to the highest level since June 2010.
Elsewhere, official data showed that U.S. producer price inflation rose slightly less-than-expected in February, increasing by a seasonally adjusted 0.4%, below expectations for a 0.5% gain, while core producer prices rose 0.2% last month, in line with expectations.
The data underlined the view that the U.S. economic recovery is gaining traction, after the Federal Reserve upgraded its outlook on the economy earlier this week, causing investors to trim back expectations for a third round of quantitative easing.
The pound was lower against the euro, with EUR/GBP adding 0.31% to hit 0.8339.
Sentiment on sterling remained soft after ratings agency Fitch placed the U.K.’s triple-A credit rating on negative outlook late Wednesday, warning that there is a slightly greater than 50% chance of a downgrade in the next two years, if the government eases back on implementing harsh austerity measures.
GBP/USD hit 1.5635 during U.S. morning trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.5672, dipping 0.02%.
Cable was likely to find support at 1.5602, the low of March 12 and a five-week low and resistance at 1.5743, Wednesday’s high.
Earlier Thursday, the Department of Labor said number of people who filed for unemployment assistance in the U.S. last week fell back to a four-year low of 351,000, beating expectations for a decline to 356,000.
Separate reports showed that manufacturing activity in the Philadelphia region expanded at a faster than forecast rate in March, rising to the highest level in 11 months, while manufacturing activity in New York improved unexpectedly, climbing to the highest level since June 2010.
Elsewhere, official data showed that U.S. producer price inflation rose slightly less-than-expected in February, increasing by a seasonally adjusted 0.4%, below expectations for a 0.5% gain, while core producer prices rose 0.2% last month, in line with expectations.
The data underlined the view that the U.S. economic recovery is gaining traction, after the Federal Reserve upgraded its outlook on the economy earlier this week, causing investors to trim back expectations for a third round of quantitative easing.
The pound was lower against the euro, with EUR/GBP adding 0.31% to hit 0.8339.
Sentiment on sterling remained soft after ratings agency Fitch placed the U.K.’s triple-A credit rating on negative outlook late Wednesday, warning that there is a slightly greater than 50% chance of a downgrade in the next two years, if the government eases back on implementing harsh austerity measures.