Investing.com - The pound recovered from session lows against the dollar on Wednesday after data showed that the U.K. unemployment rate unexpectedly fell, but gains were held in check ahead of the Bank of England’s quarterly inflation report later in the session.
GBP/USD pulled back from session lows of 1.5879, to hit 1.5931 during European morning trade, rising 0.16%.
Cable was likely to find support at 1.5853, Tuesday’s low and a two month low and resistance at 1.5990, Tuesday’s high.
The pound found support after the Office for National Statistics said that the number of people claiming unemployment benefits in the U.K. fell by 41,700 in October, better than expectations for a decline of 35,000 people.
September’s figure was revised to a drop of 44,700 people from a previously reported decline of 41,700.
The rate of unemployment ticked down to 7.6% in the three months to September. Economists had expected the unemployment rate to remain unchanged at 7.7%.
Investors remained cautious ahead a press conference with BoE Governor Mark Carney to discuss the bank's closely watched quarterly inflation report.
Sterling dropped after data released on Tuesday showed that the annual rate of inflation in the U.K. slowed to 2.2% in October, the lowest since September 2012, from 2.7% the previous month. Economists had expected the inflation rate to slow to 2.5%.
The weak data prompted investors to trim back expectations that the BoE would raise interest rates sooner than its forward guidance from August indicated.
Elsewhere, sterling rose to session highs against the euro, with EUR/GBP down 0.27% to 0.8424.
GBP/USD pulled back from session lows of 1.5879, to hit 1.5931 during European morning trade, rising 0.16%.
Cable was likely to find support at 1.5853, Tuesday’s low and a two month low and resistance at 1.5990, Tuesday’s high.
The pound found support after the Office for National Statistics said that the number of people claiming unemployment benefits in the U.K. fell by 41,700 in October, better than expectations for a decline of 35,000 people.
September’s figure was revised to a drop of 44,700 people from a previously reported decline of 41,700.
The rate of unemployment ticked down to 7.6% in the three months to September. Economists had expected the unemployment rate to remain unchanged at 7.7%.
Investors remained cautious ahead a press conference with BoE Governor Mark Carney to discuss the bank's closely watched quarterly inflation report.
Sterling dropped after data released on Tuesday showed that the annual rate of inflation in the U.K. slowed to 2.2% in October, the lowest since September 2012, from 2.7% the previous month. Economists had expected the inflation rate to slow to 2.5%.
The weak data prompted investors to trim back expectations that the BoE would raise interest rates sooner than its forward guidance from August indicated.
Elsewhere, sterling rose to session highs against the euro, with EUR/GBP down 0.27% to 0.8424.