Investing.com - The pound rose against the U.S. dollar on Tuesday, as the release of downbeat U.S. employment data weighed on demand for the greenback.
GBP/USD hit 1.6116 during U.S. morning trade, the pair's highest since October 18; the pair subsequently consolidated at 1.6202, rising 0.34%.
Cable was likely to find support at 1.6030, the low of September 27 and resistance at 1.6251, the high of October 2.
The Department of Labor said the U.S. economy added 148,000 in September, well below expectations for an increase of 180,000.
The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The dollar dropped sharply late last week as concerns over the impact of the 16-day shutdown on the U.S. economic recovery fuelled expectations that the Fed would delay plans for rolling back its asset purchase program until at least the beginning of next year.
Earlier in the day, data showed that the U.K. public sector deficit narrowed to GBP11.1 billion in September from GBP12.1 billion in September 2012.
Sterling was lower against the euro with EUR/GBP gaining 0.28%, to hit 0.8496.
GBP/USD hit 1.6116 during U.S. morning trade, the pair's highest since October 18; the pair subsequently consolidated at 1.6202, rising 0.34%.
Cable was likely to find support at 1.6030, the low of September 27 and resistance at 1.6251, the high of October 2.
The Department of Labor said the U.S. economy added 148,000 in September, well below expectations for an increase of 180,000.
The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The dollar dropped sharply late last week as concerns over the impact of the 16-day shutdown on the U.S. economic recovery fuelled expectations that the Fed would delay plans for rolling back its asset purchase program until at least the beginning of next year.
Earlier in the day, data showed that the U.K. public sector deficit narrowed to GBP11.1 billion in September from GBP12.1 billion in September 2012.
Sterling was lower against the euro with EUR/GBP gaining 0.28%, to hit 0.8496.