Investing.com - The pound remained moderately lower against the U.S. dollar on Thursday, as investors were cautious ahead of the Federal Reserve's policy meeting next week, after mixed U.S. data fuelled fresh uncertainty over the nation's economic recovery.
GBP/USD hit 1.6352 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6358, edging down 0.11%.
Cable was likely to find support at 1.6278, the low of November 28 and resistance at 1.6466, the high of December 10 and a 27-month high.
The Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to a two month high of 368,000, compared to expectations for an increase to 320,000 from the previous week’s revised total of 300,000.
A separate report showed that U.S. retail sales rose 0.7% in November, above expectations for a 0.6% increase. Core retail sales rose 0.4%, above forecasts for a 0.2% increase the Commerce Department said.
The greenback remained supported by expectations that an agreement on a two year U.S. budget deal would prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17-18.
But the pound’s losses looked likely to remain limited after a recent series of upbeat economic data reinforced the view that the economic recovery in the U.K. is gaining traction, fuelling hopes that the Bank of England may raise interest rates ahead of other central banks.
Sterling was steady against the euro, with EUR/GBP dipping 0.05% to 0.8413.
Also Thursday, data showed that industrial production in the euro area fell by 1.1% in October and rose just 0.2% from a year earlier. Economists had forecast a monthly increase of 0.3% and an annual gain of 1.1%.
GBP/USD hit 1.6352 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6358, edging down 0.11%.
Cable was likely to find support at 1.6278, the low of November 28 and resistance at 1.6466, the high of December 10 and a 27-month high.
The Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to a two month high of 368,000, compared to expectations for an increase to 320,000 from the previous week’s revised total of 300,000.
A separate report showed that U.S. retail sales rose 0.7% in November, above expectations for a 0.6% increase. Core retail sales rose 0.4%, above forecasts for a 0.2% increase the Commerce Department said.
The greenback remained supported by expectations that an agreement on a two year U.S. budget deal would prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its policy meeting scheduled for December 17-18.
But the pound’s losses looked likely to remain limited after a recent series of upbeat economic data reinforced the view that the economic recovery in the U.K. is gaining traction, fuelling hopes that the Bank of England may raise interest rates ahead of other central banks.
Sterling was steady against the euro, with EUR/GBP dipping 0.05% to 0.8413.
Also Thursday, data showed that industrial production in the euro area fell by 1.1% in October and rose just 0.2% from a year earlier. Economists had forecast a monthly increase of 0.3% and an annual gain of 1.1%.