Investing.com - The pound was little changed against the firmer dollar on Wednesday after touching session highs earlier when data showed that the number of people claiming unemployment benefits in the U.K. fell to the lowest level in two years in May.
GBP/USD hit 1.5682 during European afternoon trade, the pair’s highest since June 6; the pair subsequently consolidated at 1.5651, inching up 0.04%.
Cable was likely to find support at 1.5600 and near-term resistance at 1.5682, the session high and a four-month high.
The dollar firmed up against the other major currencies on Wednesday, regaining ground lost on Tuesday amid fears that global central banks are coming to the end of stimulus programs.
Investors remained cautious as speculation that the Federal Reserve will begin to unwind its USD85 billion-a-month asset purchase program this year continued to weigh on market sentiment.
The pound popped higher earlier after the Office for National Statistics said that the claimant count in the U.K. fell by a seasonally adjusted 8,600 in May, better than expectations for a decline of 5,000 people.
The previous month’s figure was revised to a drop of 11,800 people from a previously reported decrease of 7,300.
The ONS said the unemployment rate remained steady at 7.8% in April, in line with expectations.
The average earnings index rose by a seasonally adjusted 1.3% in the three months to April, the fastest rate of increase so far this year, and was 3.3% higher on the month.
The data added to optimism over the economic recovery in the U.K. after data last week showed that service sector activity expanded at the fastest rate since March 2012 last month.
The euro was trading close to three-week lows against sterling, with EUR/GBP down 0.31% to 0.8482.
The euro found some support after official data showing that industrial production in the euro zone rose for the third consecutive month in April fuelled hopes that the recession in the bloc may be ending.
Eurostat said industrial production rose by a seasonally adjusted 0.4% in April, defying expectations for a 0.2% decline.
Also Wednesday, Italy saw borrowing costs rise to the highest level since March when the treasury auctioned EUR7 billion of 12-month bills at a yield of 0.96%, up from 0.70% previously.
GBP/USD hit 1.5682 during European afternoon trade, the pair’s highest since June 6; the pair subsequently consolidated at 1.5651, inching up 0.04%.
Cable was likely to find support at 1.5600 and near-term resistance at 1.5682, the session high and a four-month high.
The dollar firmed up against the other major currencies on Wednesday, regaining ground lost on Tuesday amid fears that global central banks are coming to the end of stimulus programs.
Investors remained cautious as speculation that the Federal Reserve will begin to unwind its USD85 billion-a-month asset purchase program this year continued to weigh on market sentiment.
The pound popped higher earlier after the Office for National Statistics said that the claimant count in the U.K. fell by a seasonally adjusted 8,600 in May, better than expectations for a decline of 5,000 people.
The previous month’s figure was revised to a drop of 11,800 people from a previously reported decrease of 7,300.
The ONS said the unemployment rate remained steady at 7.8% in April, in line with expectations.
The average earnings index rose by a seasonally adjusted 1.3% in the three months to April, the fastest rate of increase so far this year, and was 3.3% higher on the month.
The data added to optimism over the economic recovery in the U.K. after data last week showed that service sector activity expanded at the fastest rate since March 2012 last month.
The euro was trading close to three-week lows against sterling, with EUR/GBP down 0.31% to 0.8482.
The euro found some support after official data showing that industrial production in the euro zone rose for the third consecutive month in April fuelled hopes that the recession in the bloc may be ending.
Eurostat said industrial production rose by a seasonally adjusted 0.4% in April, defying expectations for a 0.2% decline.
Also Wednesday, Italy saw borrowing costs rise to the highest level since March when the treasury auctioned EUR7 billion of 12-month bills at a yield of 0.96%, up from 0.70% previously.