Forex - GBP/USD trims gains after better-than-expected U.S. data

Published 10/07/2010, 11:34 AM
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Investing.com – The pound trimmed gains against the U.S. dollar on Thursday, retreating from an 8-month high, after the release of better-than-expected U.S. data on initial jobless claims.

GBP/USD retreated from 1.6017 the pair’s highest since February 3, to hit 1.5923 during European late afternoon trade, gaining 0.21%.

 Cable was likely to find support at 1.5831, Wednesday’s low and resistance at 1.6178, the high of January 29.

Earlier Thursday, the U.S. Department of Labor said that U.S. initial jobless claims declined to a seasonally adjusted 445K last week after falling to revised 456K in the preceding week. Analysts had expected jobless claims to decline to 455K last week.

The data eased concerns that the Federal Reserve may go ahead with a second round of what is known as quantitative easing, or asset purchases meant to drive long-term interest rates lower.

The pound was also up against the euro, with EUR/GBP shedding 0.27% to hit 0.8744.

Also Thursday, the Bank of England kept its benchmark interest rate unchanged at 0.5% for the twentieth consecutive month in October, in a widely expected move.


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