Investing.com - The pound remained higher against the U.S. dollar on Thursday, as market sentiment was supported by data showing that U.S. initial jobless claims fell to their lowest level since February 2008 last week.
GBP/USD hit 1.6054 during U.S. morning trade, the pair's highest since October 9; the pair subsequently consolidated at 1.6036, adding 0.19%.
Cable was likely to find support at 1.5977, the low of October 9 and resistance at 1.6105, the high of September 12.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
The previous week’s figure was revised up to 369,000 from a previously reported 367,000.
The pound had strengthened earlier after a ratings downgrade on Spain by Standard & Poor’s fueled hopes that the country would be forced to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
Sentiment on sterling remained vulnerable however, after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
Elsewhere, the pound was lower against the euro with EUR/GBP rising 0.30%, to hit 0.8066.
Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.
GBP/USD hit 1.6054 during U.S. morning trade, the pair's highest since October 9; the pair subsequently consolidated at 1.6036, adding 0.19%.
Cable was likely to find support at 1.5977, the low of October 9 and resistance at 1.6105, the high of September 12.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.
The previous week’s figure was revised up to 369,000 from a previously reported 367,000.
The pound had strengthened earlier after a ratings downgrade on Spain by Standard & Poor’s fueled hopes that the country would be forced to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.
S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
Sentiment on sterling remained vulnerable however, after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
Elsewhere, the pound was lower against the euro with EUR/GBP rising 0.30%, to hit 0.8066.
Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.