Investing.com – The pound reversed gains against the U.S. dollar on Thursday, retreating from a 12-week high, following the release of a string of better-than-expected U.S. data.
GBP/USD retreated from 1.6278, the pair’s highest since November 5 to hit 1.6139 during European late afternoon trade, shedding 0.32%.
Cable was likely to find support at 1.6008, Tuesday’s low and resistance at 1.6277, the day’s high.
Earlier in the day, the Institute for Supply Management said that the U.S. services sector grew in January at its fastest pace since August 2005. Its index of national non-manufacturing activity rose to 59.4 in January from 57.1 in December, surpassing a forecast of 57.0.
Also Thursday, U.S. government data showed that the number of people claiming initial jobless benefits fell more-than-expected last week.
A separate report showed that U.S. labor productivity rose more-than-expected in the fourth quarter while unit labor costs declined unexpectedly.
Earlier the pound advanced to a 12-week high after the U.K. services PMI rose to its highest level since last May.
The upbeat data underlined expectations that the Bank of England may need to tighten monetary policy in the first half of 2011, after better-than-expected U.K. manufacturing and construction PMI surveys for January, released earlier in week, helped to offset a surprise contraction in U.K. fourth quarter GDP.
Meanwhile, the pound was higher against the euro, with EUR/GBP plunging 1.035 to hit 0.8441.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke, was to speak at a public engagement.
GBP/USD retreated from 1.6278, the pair’s highest since November 5 to hit 1.6139 during European late afternoon trade, shedding 0.32%.
Cable was likely to find support at 1.6008, Tuesday’s low and resistance at 1.6277, the day’s high.
Earlier in the day, the Institute for Supply Management said that the U.S. services sector grew in January at its fastest pace since August 2005. Its index of national non-manufacturing activity rose to 59.4 in January from 57.1 in December, surpassing a forecast of 57.0.
Also Thursday, U.S. government data showed that the number of people claiming initial jobless benefits fell more-than-expected last week.
A separate report showed that U.S. labor productivity rose more-than-expected in the fourth quarter while unit labor costs declined unexpectedly.
Earlier the pound advanced to a 12-week high after the U.K. services PMI rose to its highest level since last May.
The upbeat data underlined expectations that the Bank of England may need to tighten monetary policy in the first half of 2011, after better-than-expected U.K. manufacturing and construction PMI surveys for January, released earlier in week, helped to offset a surprise contraction in U.K. fourth quarter GDP.
Meanwhile, the pound was higher against the euro, with EUR/GBP plunging 1.035 to hit 0.8441.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke, was to speak at a public engagement.