Investing.com - The pound was steady near one week highs against the dollar on Thursday, following slightly better than expected U.K. trade data, but gains were capped as investors remained cautious ahead Friday’s U.S. jobs report for December.
GBP/USD touched highs of 1.6480, the strongest level since January 2 and was last up 0.10% to 1.6464.
Cable was likely to find support at 1.6375, Wednesday’s low and resistance at 1.6500.
Sterling found support after data showed that Britain’s trade deficit narrowed slightly more than expected in November as exports to Europe picked up.
The Office for National Statistics said the trade deficit narrowed to GBP9.44 billion from a downwardly revised deficit of GBP9.65 billion in October. Economists had forecast a deficit of GBP9.45 billion.
Exports to the EU rose to GBP12.75 billion in November the ONS said, the highest level since August.
The dollar continued to remain supported after Wednesday’s minutes of the Federal Reserves’ December meeting showed that the bank cited a stronger labor market in its decision to cut its asset purchase program by USD10 billion, reducing it to USD75 billion-a-month.
The minutes also showed that officials were keen to stress that further reductions were not on a “preset course” and would be undertaken in “measured” steps.
The minutes came on the heels of a report showing that the U.S. private sector added the largest number of jobs since November 2012 last month. ADP nonfarm payrolls rose by 238,000 in December, easily surpassing expectations for an increase of 200,000.
Sterling remained slightly lower against the euro, with EUR/GBP up 0.17% to 0.8267.
The Bank of England and the European Central Bank were to announce their latest interest rate decisions later in the session.
GBP/USD touched highs of 1.6480, the strongest level since January 2 and was last up 0.10% to 1.6464.
Cable was likely to find support at 1.6375, Wednesday’s low and resistance at 1.6500.
Sterling found support after data showed that Britain’s trade deficit narrowed slightly more than expected in November as exports to Europe picked up.
The Office for National Statistics said the trade deficit narrowed to GBP9.44 billion from a downwardly revised deficit of GBP9.65 billion in October. Economists had forecast a deficit of GBP9.45 billion.
Exports to the EU rose to GBP12.75 billion in November the ONS said, the highest level since August.
The dollar continued to remain supported after Wednesday’s minutes of the Federal Reserves’ December meeting showed that the bank cited a stronger labor market in its decision to cut its asset purchase program by USD10 billion, reducing it to USD75 billion-a-month.
The minutes also showed that officials were keen to stress that further reductions were not on a “preset course” and would be undertaken in “measured” steps.
The minutes came on the heels of a report showing that the U.S. private sector added the largest number of jobs since November 2012 last month. ADP nonfarm payrolls rose by 238,000 in December, easily surpassing expectations for an increase of 200,000.
Sterling remained slightly lower against the euro, with EUR/GBP up 0.17% to 0.8267.
The Bank of England and the European Central Bank were to announce their latest interest rate decisions later in the session.