Investing.com - The pound rose to a two-day high against the U.S. dollar on Thursday, after a positive estimate for growth in the U.K. and the Bank of England left its benchmark interest rate unchanged, amid hopes for progress in Greece’s coalition negotiations.
GBP/USD hit 1.6182 during U.S. morning trade, the pair’s highest since May 8; the pair subsequently consolidated at 1.6173, rising 0.29%.
Cable was likely to find support at 1.6090, the session low and resistance at 1.6246, the high of May 1.
Sterling found support after a report by the National Institute of Economic and Social Research suggested that gross domestic product in the U.K. grew by 0.1% in the three months ending in April after declining by 0.2% in the three months ending in March.
The data came after the Bank of England kept its benchmark interest rate unchanged at a record low of 0.5%, in a widely expected move and announced no change to the size of its asset purchase facility which stands at GBP325 billion, following a GBP50 billion increase in February.
Sentiment also found support amid hopes Greek Socialist leader Evangelos Venizelos would manage to form a government on Thursday.
Venizelos, who was the country’s former finance minister, said he would approach all political party leaders and try to get New Democracy, Syriza and Democratic Left to form a pro-European national unity government.
In the U.S., the Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending May 5 fell to 367,000, defying expectations for an increase of 1,000 to 369,000.
The previous week’s figure was revised up to 368,000 from 365,000.
Meanwhile, a separate report showed that the U.S. trade deficit widened to USD51.8 billion in March from deficit of USD45.4 billion in February. Analysts had expected the U.S. trade deficit to widen to USD50.0 billion.
Elsewhere, the pound remained close to a three-and-a-half high against the euro with EUR/GBP inching up 0.02%, to hit 0.8017.
Also Thursday, the U.K. Office for National Statistics said that manufacturing production rose by 0.9% in March, beating expectations for a 0.5% increase. February’s figure was revised to a 1.1% decline from a previously reported drop of 1.0%.
GBP/USD hit 1.6182 during U.S. morning trade, the pair’s highest since May 8; the pair subsequently consolidated at 1.6173, rising 0.29%.
Cable was likely to find support at 1.6090, the session low and resistance at 1.6246, the high of May 1.
Sterling found support after a report by the National Institute of Economic and Social Research suggested that gross domestic product in the U.K. grew by 0.1% in the three months ending in April after declining by 0.2% in the three months ending in March.
The data came after the Bank of England kept its benchmark interest rate unchanged at a record low of 0.5%, in a widely expected move and announced no change to the size of its asset purchase facility which stands at GBP325 billion, following a GBP50 billion increase in February.
Sentiment also found support amid hopes Greek Socialist leader Evangelos Venizelos would manage to form a government on Thursday.
Venizelos, who was the country’s former finance minister, said he would approach all political party leaders and try to get New Democracy, Syriza and Democratic Left to form a pro-European national unity government.
In the U.S., the Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending May 5 fell to 367,000, defying expectations for an increase of 1,000 to 369,000.
The previous week’s figure was revised up to 368,000 from 365,000.
Meanwhile, a separate report showed that the U.S. trade deficit widened to USD51.8 billion in March from deficit of USD45.4 billion in February. Analysts had expected the U.S. trade deficit to widen to USD50.0 billion.
Elsewhere, the pound remained close to a three-and-a-half high against the euro with EUR/GBP inching up 0.02%, to hit 0.8017.
Also Thursday, the U.K. Office for National Statistics said that manufacturing production rose by 0.9% in March, beating expectations for a 0.5% increase. February’s figure was revised to a 1.1% decline from a previously reported drop of 1.0%.