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Forex - Pound jumps versus dollar on upbeat U.K. jobs data

Published 04/21/2010, 05:03 AM
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Investing.com – The pound jumped versus the U.S. dollar on Wednesday after official data showed that the number of Britons claiming unemployment benefits fell  faster than expected in March.

GBP/USD hit 1.5418 during European morning trade, gaining 0.4% . The pair was likely to find resistance at 1.5816, the high of Feb. 17, and support at 1.5129, the low of April 6.

Earlier in the day, Britain's Office for National Statistics said the number of people claiming jobless benefit fell by 32,900 in March. Economists had expected a far more modest decline of 6,000.

However, the office added that the U.K. unemployment rate rose to 8.0% during the first quarter, the highest since 1996 and above market expectations of a steady reading of 7.8%.

Sterling also rose against the euro, meanwhile, with EUR/GBP shedding 0.4% to reach 0.8712.

Later Wednesday, U.S. Federal Reserve Chairman Ben Bernanke was set to speak at an event in Washington, D.C. Traders were likely to scrutinize his comments for clues to future shifts in monetary policy.

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