Forex - GBP/USD trims gains after mixed U.K. employment data

Published 10/13/2010, 11:33 AM
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Investing.com – The pound trimmed gains against the U.S. dollar on Wednesday retreating from a daily high, following the release of mixed U.K. employment data.

GBP/USD retreated from 1.5889, the daily high, to hit 1.5831 during European late afternoon trade, gaining 0.15%.

Cable was likely to find support at 1.5753, Tuesday’s low and resistance at 1.6017, the high of October 7.

Earlier in the day, official data showed that number of people claiming unemployment benefits in the U.K. rose more-than-expected in September, rising for the second consecutive month, while the unemployment rate unexpectedly declined.

In a report, the U.K. Office for National Statistics said that the claimant count rose by a seasonally adjusted 5,300 in September, after rising by a revised 3,800 in August. Analysts had expected the claimant count to increase by 3,900 in September.

The rate of unemployment fell to a seasonally adjusted 7.7% in August, after holding steady at 7.8% in July. Analysts had expected the rate of unemployment to remain unchanged in August.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.09% to hit 0.8816.

On Tuesday, the minutes of the September 21 meeting of the Federal Reserve policy setting committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.

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