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Forex - GBP/USD hits fresh daily high after weak U.S. data

Published 11/17/2010, 10:35 AM
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Investing.com - The pound was up against the U.S. dollar on Wednesday, rising to a fresh daily high after the release of worse-than-expected U.S. data on consumer prices and building permits.

GBP/USD hit 1.5938 during European afternoon trade, daily high; the pair subsequently consolidated at 1.5934, gaining 0.30%.

Cable was likely to find support at 1.5761, the low of October 28 and resistance at 1.6086, Tuesday’s high.

Earlier in the day, official U.S. data showed that core consumer price inflation, which excludes food and energy costs was unexpectedly flat in October, unchanged from the previous month. Analysts had expected core consumer prices to rise by 0.1% in October.

Consumer prices including food and energy costs rose less-than-expected in October, increasing by 0.2%, after rising by 0.1% in September. Analysts had expected consumer price inflation to rise by 0.3% in October.

Elsewhere, a separate report showed that the number of building permits issued in the U.S. rose less-than-expected in October while housing starts fell more-than-expected.

Meanwhile, the pound was down against the euro with EUR/GBP rising 0.14% to hit 0.8503.

Earlier Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. fell unexpectedly in October, declining for the first time in three months.

Meanwhile, the minutes of the Bank of England’s November monetary policy meeting showed that policymakers were split three ways for a second month as some officials remained concerned over continuing high inflation levels.



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