Investing.com - The pound was unchanged against the U.S. dollar on Wednesday, after the release of U.S. economic data as downbeat remarks by the Bank of England and political uncertainty in Greece continued to weigh.
GBP/USD pulled back from 1.5889, the pair’s lowest since April 17, to hit 1.5934 during U.S. morning trade, still down 0.38%.
Cable was likely to find support at 1.5861, the low of April 17 and resistance at 1.6041, the high of April 18.
Official data showed that new housing starts in the U.S. rose unexpectedly in April, climbing to a seasonally adjusted 0.717 million, confounding expectations for a decline to 0.680 million.
The number of building permits issued in the U.S. in April fell 7.0%, more than expectations for a decline of 4.5%.
A separate report showed that industrial production in the U.S. rose significantly more-than-expected in April, climbing 1.1%, but March’s figure was revised down to a 0.6% drop from a previously reported flat reading.
Meanwhile, sentiment slightly improved after German Chancellor Angela Merkel indicated that her government was willing to give more economic support to Greece to help the country remain in the euro zone, but investors remained cautious ahead of fresh Greek elections scheduled in June.
The pound weakened broadly earlier after the BoE’s quarterly inflation report said inflation will not fall back as quickly as hoped and was likely to remain above its 2% targeted rate for at least another year.
The BoE also revised down economic growth forecasts, with policymakers now expecting an annual rate of growth of approximately 2.6% in two years' time, compared with February's forecast of 3%.
Earlier Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. posted the largest monthly drop since July 2010 last month, falling by a seasonally adjusted 13,700 in April, defying expectations for an increase of 5,000.
The U.K. unemployment rate ticked down to 8.2% from 8.3%, declining for the second consecutive month.
The pound was also lower against the euro, pulling away from a three-and-a-half year high, with EUR/GBP adding 0.48% to hit 0.7998.
Later in the day, the Federal Reserve was to publish the minutes of its most recent policy meeting.
GBP/USD pulled back from 1.5889, the pair’s lowest since April 17, to hit 1.5934 during U.S. morning trade, still down 0.38%.
Cable was likely to find support at 1.5861, the low of April 17 and resistance at 1.6041, the high of April 18.
Official data showed that new housing starts in the U.S. rose unexpectedly in April, climbing to a seasonally adjusted 0.717 million, confounding expectations for a decline to 0.680 million.
The number of building permits issued in the U.S. in April fell 7.0%, more than expectations for a decline of 4.5%.
A separate report showed that industrial production in the U.S. rose significantly more-than-expected in April, climbing 1.1%, but March’s figure was revised down to a 0.6% drop from a previously reported flat reading.
Meanwhile, sentiment slightly improved after German Chancellor Angela Merkel indicated that her government was willing to give more economic support to Greece to help the country remain in the euro zone, but investors remained cautious ahead of fresh Greek elections scheduled in June.
The pound weakened broadly earlier after the BoE’s quarterly inflation report said inflation will not fall back as quickly as hoped and was likely to remain above its 2% targeted rate for at least another year.
The BoE also revised down economic growth forecasts, with policymakers now expecting an annual rate of growth of approximately 2.6% in two years' time, compared with February's forecast of 3%.
Earlier Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. posted the largest monthly drop since July 2010 last month, falling by a seasonally adjusted 13,700 in April, defying expectations for an increase of 5,000.
The U.K. unemployment rate ticked down to 8.2% from 8.3%, declining for the second consecutive month.
The pound was also lower against the euro, pulling away from a three-and-a-half year high, with EUR/GBP adding 0.48% to hit 0.7998.
Later in the day, the Federal Reserve was to publish the minutes of its most recent policy meeting.