Investing.com - The pound dropped to fresh five-and-a-half year lows against the U.S. dollar on Friday, as sentiment remained under pressure amid an ongoing oil rout and as investors awaited the release of U.S. economic reports later in the day.
GBP/USD hit 1.4339 during European morning trade, the pair’s lowest since May 2010; the pair subsequently consolidated at 1,4357, sliding 0.39%.
Cable was likely to find support at 1.4229 and resistance at 1.4445, Thursday’s high.
Investors remained cautious after Brent crude, the global benchmark, fell below the $30 per barrel threshold on Friday to $29.93, the lowest level since 2004, pressured lower by a global supply glut and fears of a slowdown in China.
Meanwhile, the dollar remained supported after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending January 8 increased by 7,000 to 284,000 from the previous week’s total of 277,000.
Analysts expected jobless claims to fall by 2,000 to 275,000 last week.
Market participants were eyeing reports on U.S. retail sales, producer prices and consumer sentiment due later in the day, for further indications on the strength of the economy.
Sterling was also lower against the euro, with EUR/GBP gaining 0.78% to 0.7598.