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Forex - GBP/USD erases losses after upbeat U.K. employment data

Published 11/17/2010, 05:33 AM
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Investing.com – The pound erased early losses against the U.S. dollar on Wednesday, rising to hit a fresh daily high after the release of significantly better-than-expected U.K. employment data.

GBP/USD clawed up from 1.5853, the daily low, to hit 1.5924 during European morning trade, gaining 0.24%.

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 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.

The U.K. Office for National Statistics said that the claimant count fell by a seasonally adjusted 3,700 in October, after rising by a revised 1,300 in September. Analysts had expected the claimant count to increase by 6,000 in October.

Meanwhile, the rate of unemployment remained unchanged in September, holding steady at a seasonally adjusted 7.7%, in line with expectations.

Also Wednesday, 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.

The pound was also up against the euro, with EUR/GBP slipping 0.02% to hit 0.8489.

Later in the day, the U.S. was to release official data on inflation, building permits and housing starts.

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