Forex - GBP/USD rebounds from 9-day low

Published 12/16/2010, 03:55 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound was higher against the U.S. dollar on Thursday, rebounding from a 9-day low as trade remained volatile ahead of the years end.

GBP/USD hit 1.5603 during early European trade, the daily high; the pair subsequently consolidated at 1.5585, gaining 0.26%.

Cable was likely to find support at 1.5529, Wednesday’s low and resistance at 1.5773, Wednesday’s high.

On Wednesday, the pound plunged more that 1% against the dollar after government data showed that the number of people in the U.K. claiming unemployment benefits fell less-than-expected in November.

A separate report showed that the level of unemployment posted a surprise rise in the three months to October, increasing at the fastest pace since the first quarter of this year.

Also Wednesday, official data showed that U.S. core consumer prices, which exclude food and energy costs, rose in line with expectations in November.

Meanwhile, separate reports showed that U.S. industrial production rose slightly more-than-expected in November while the New York Federal Reserve’s index of manufacturing conditions rose significantly more-than-expected in December.

Meanwhile, the pound was slightly lower against the euro, with EUR/GBP easing up 0.01% to hit 0.8500.

Later Thursday, the U.K. was to publish official data on retail sales, while the U.S. was to publish a key weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity in Philadelphia.

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