Investing.com – The pound trimmed gains against the U.S. dollar on Thursday, pulling back from a two-day high hit after the European Central Bank announced that it would provide additional dollar liquidity to European banks.
GBP/USD pulled away from 1.5869, the pair’s highest since Tuesday, to hit 1.5817 during U.S. morning trade, still up 0.35%.
Cable was likely to find support at 1.5705, Wednesday’s low and a seven-month low and resistance at 1.5990, last Friday’s high.
The ECB announced that it was launching a coordinated action along with four other central banks, including the Bank of England, to offset liquidity shortages at European banks.
The announcement eased concerns over funding shortages among European lenders, who have been finding it difficult to borrow dollars as a result of the region's debt crisis and have had to depend more heavily on the ECB for loans.
Elsewhere, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits rose by 11,000 to a seasonally adjusted 428,000 last week, confounding expectations for a decline to 410,000.
Also Thursday, official data showed that U.S. core consumer price inflation rose in line with expectations August, rising 0.02%, while consumer prices including food and energy costs rose 0.4%, above expectations for a 0.2% gain.
In the U.K., official data earlier showed that retail sales declined in line with expectation in August, slipping 0.2%.
The report did little to quell speculation that the BoE may resort to fresh monetary stimulus measures to shore up growth after a recent string of soft economic data added to fears over the fragile U.K. economy.
Elsewhere, the pound was down against the euro, with EUR/GBP rising 0.265 to hit 0.8744.
Also Thursday, official data showed that manufacturing activity in the Philadelphia region improved less-than-expected in September, remaining in negative territory for the second consecutive month, while an index of manufacturing conditions in New York fell unexpectedly.
GBP/USD pulled away from 1.5869, the pair’s highest since Tuesday, to hit 1.5817 during U.S. morning trade, still up 0.35%.
Cable was likely to find support at 1.5705, Wednesday’s low and a seven-month low and resistance at 1.5990, last Friday’s high.
The ECB announced that it was launching a coordinated action along with four other central banks, including the Bank of England, to offset liquidity shortages at European banks.
The announcement eased concerns over funding shortages among European lenders, who have been finding it difficult to borrow dollars as a result of the region's debt crisis and have had to depend more heavily on the ECB for loans.
Elsewhere, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits rose by 11,000 to a seasonally adjusted 428,000 last week, confounding expectations for a decline to 410,000.
Also Thursday, official data showed that U.S. core consumer price inflation rose in line with expectations August, rising 0.02%, while consumer prices including food and energy costs rose 0.4%, above expectations for a 0.2% gain.
In the U.K., official data earlier showed that retail sales declined in line with expectation in August, slipping 0.2%.
The report did little to quell speculation that the BoE may resort to fresh monetary stimulus measures to shore up growth after a recent string of soft economic data added to fears over the fragile U.K. economy.
Elsewhere, the pound was down against the euro, with EUR/GBP rising 0.265 to hit 0.8744.
Also Thursday, official data showed that manufacturing activity in the Philadelphia region improved less-than-expected in September, remaining in negative territory for the second consecutive month, while an index of manufacturing conditions in New York fell unexpectedly.