Forex - GBP/USD trims gains ahead of flurry of U.S. data

Published 09/15/2011, 07:57 AM
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Investing.com – The pound trimmed gains against the U.S. dollar on Thursday, pulling back from a two-day high ahead of the release of a flurry of U.S. data later in the day.

GBP/USD pulled away from 1.5838, the pair’s highest since Tuesday, to hit 1.5809 during European afternoon trade, still up 0.25%.

Cable was likely to find short-term support at 1.5707, Wednesday’s low and an eight-month low and resistance at 1.5869, Tuesday’s high.

The pound erased losses against the greenback earlier as market sentiment strengthened after a senior European Union policymaker said that Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.

The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.

Meanwhile, Spain’s Treasury sold EUR3.95 billion of long term bonds in an auction which attracted solid investor demand.

In the U.K., official data showed that retail sales declined in line with expectation in August, slipping 0.2%.

Sterling remained vulnerable as the report did little to quell speculation that the Bank of England 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 easing up 0.08% to hit 0.8728.

Later Thursday, Federal Reserve Chairman Ben Bernanke was to speak, while the U.S. was to publish a string of data, with government reports on consumer price inflation and initial jobless claims. The country was also to publish official data on manufacturing activity in New York and Philadelphia.


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