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Forex - GBP/USD trims gains as U.S. jobs, inflation data eyed

Published 04/14/2011, 07:32 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound trimmed gains against the U.S. dollar on Thursday, easing off a three-day high ahead of the release of U.S. government data on producer price inflation and employment later in the day.

GBP/USD retreated from 1.6364, the pair’s highest since Monday, to hit 1.6325 during European afternoon trade, still up 0.35% on the day.

Cable was likely to find support at 1.6236, Wednesday’s low and resistance at 1.6425, Monday’s high and a 15-month high.

Earlier in the day, Nationwide Building Society said its U.K. consumer confidence index rose to 44 in March from 39 the previous month. The February number was revised up 1 point, but it was still the lowest in the survey's history.

Nationwide's chief economist Robert Gardner noted that consumer morale remained very downbeat even after the March rebound and the index was well off its long-term average of 80.

"We will need to see a succession of increases before we can say that confidence has returned anywhere close to pre-recession levels," he said.

The pound was also higher against the euro, with EUR/GBP tumbling 0.71% to hit 0.8815.

The euro’s losses came amid fresh concerns over the euro zone sovereign debt crisis after German Finance Minister Wolfgang Schaeuble said earlier that Greece may have to restructure its debt.


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