Forex - GBP/USD remains higher after U.S. data

Published 01/19/2012, 10:34 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound remained higher against the U.S. dollar on Thursday, after a string of mainly upbeat U.S. data while investors remained focused on the outcome of fresh Greece bailout talks.

GBP/USD hit 1.5465 during U.S. morning trade, the pair’s highest since January 11; the pair subsequently consolidated at 1.5463, adding 0.15%.

Cable was likely to find support at 1.5395, the low of January 9 and resistance at 1.5500, the high of January 10.

Sentiment was mildly supported after official data showed that the number of people who filed for unemployment assistance in the U.S. last week declined unexpectedly to 352,000, falling to the lowest level since April 2008.

The data came after reports showing that the number of building permits issued in the U.S. was unchanged at 0.68 million in December, holding steady near the highest level since March 2010, while housing starts rose less-than-expected.

Data also showed that core consumer price inflation rose 0.1% in December, in line with expectations after a 0.2% rise the previous month, while consumer price inflation was flat in December, confounding expectations for a 0.1% rise.

A separate report showed that the Federal Reserve Bank of Philadelphia’s manufacturing index worsened unexpectedly to 7.3 in January from November’s reading of 10.3.

Sterling found support earlier after well-received auctions of Spanish and French government debt.

Meanwhile, talks between Greek Prime Minister Lucas Papademos and the country’s creditors continued for a second day, after breaking down last week amid disagreements over how much money investors will lose by swapping their bonds.

Greece needs to secure an agreement on restructuring its debt in order to access new bailout funds and avert a default when an EUR14.4 billion bond redemption comes due on March 20.

The pound was lower against the euro with EUR/GBP edging up 0.04%, to hit 0.8336.

Also Thursday, the Nationwide Building Society said in a report that its index of U.K. consumer confidence declined unexpectedly in December, slipping to 38 after a reading at 40 the previous month.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.