Forex - GBP/USD steady after U.S. employment data

Published 11/01/2012, 08:59 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound was steady against the U.S. dollar on Thursday, following the release of broadly better-than-forecast U.S. employment data, as investors remained cautious ahead of U.S. nonfarm payrolls data on Friday.

GBP/USD hit 1.6175 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6151, gaining 0.13%.

Cable was likely to find support at 1.6067, Wednesday’s low and resistance at 1.6177, the high of October 17.

The Department of Labor said the number of individuals filing for initial jobless benefits fell to 363,000 last week from 372,000 the previous week, compared to expectations for a decline to 370,000.

The previous week’s figure was revised up to 372,000 from a previously reported 369,000.

The data came on the heels of a report showing that U.S. private sector employment increased more-than-expected in October.

Payroll processing firm ADP said the U.S. private sector added 158,000 jobs this month, surpassing expectations for an increase of 135,000.

The previous month’s figure was revised down to a gain of 88,200 from a previously reported increase of 162,000.

Earlier Thursday, data showed that the U.K. manufacturing purchasing managers’ index fell to 47.5 in October from a reading of 48.4 in September, compared to expectations for a dip to 48.1.

The report showed that manufacturers cut production for the fourth month, while new orders fell at a faster rate than in September as export demand remained weak.

The data came after a report by U.K. mortgage lender Nationwide showed that house prices rose 0.6% in October, better than expectations for a 0.2% increase.

Demand for the pound continued to remain underpinned after government data last week showed that the U.K. economy emerged from recession in the third quarter, prompting market participants to trim back expectations for another round of easing by the Bank of England.

The pound was little changed against the euro, with EUR/GBP dipping 0.02% to 0.8032.

Later in the day, the Institute of Supply Management was to publish data on U.S. manufacturing activity.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.