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Forex - GBP/USD steady near 11-month trough after U.K. jobs data

Published 10/15/2014, 04:40 AM
Pound holds near multi-month lows vs. dollar after U.K. report
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Investing.com - The pound held steady against the U.S. dollar on Wednesday, hovering near an 11-month trough as data showed that the U.K. claimant count declined less than expected in August, although the unemployment rate fell to the lowest level since October 2008.

GBP/USD hit 1.5878 during European morning trade, the pair's lowest since November 2013; the pair subsequently consolidated at 1.5901, dipping 0.01%.

Cable was likely to find support at 1.5852 and resistance at 1.6103, Tuesday's high.

In a report, the U.K. Office for National Statistics said that the claimant count fell by 18,600 last month, compared to expectations for a decline of 35,000 people. August’s figure was revised to a drop of 33,200 people from a previously reported decline of 37,200.

The report also showed that the rate of unemployment declined to 6.0% in the three months to August, compared to expectations for a reading of 6.1% and down from 6.2% in the three months to July.

Meanwhile, market sentiment remained under pressure amid growing concerns over the outlook for growth in the euro zone after data on Tuesday showed that the bloc's industrial production declined more than expected in August, while July's figure was revised down.

A separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October, fuelling further concerns over the euro zone's largest economy.

Elsewhere, sterling was fractionally higher against the euro, with EUR/GBP edging down 0.09% to 0.7953.

Later in the day, the U.S. was to release data on retail sales, as well as reports on producer prices and manufacturing activity in the New York region.

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