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Forex - GBP/USD gains on U.K. growth rates, soft U.S. jobs data

Published 07/25/2013, 01:41 PM
Updated 07/25/2013, 01:42 PM
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Investing.com - The pound moved higher against the dollar on Thursday after U.K. growth rates met expectations while U.S. jobless claims figures came in worse than expected.

In U.S. trading on Thursday, GBP/USD was trading at 1.5357, up 0.28%, up from a session low of 1.5265 and off from a high of 1.5386.

Cable was likely to find support at 1.5265, the earlier low, and resistance at 1.5392, Tuesday's high.

Data released earlier on Thursday showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations.

The U.K. economy expanded 0.6% quarter on quarter after a 0.3% expansion in the first quarter.

The greenback, however, weakened on soft data out of the U.S. labor market.

The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.

The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, especially by keeping its monthly USD85 billion bond-buying program in place.

Monetary stimulus programs weaken the dollar by keeping borrowing costs low across the economy.

In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%.

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase, which kept the greenback lower.

The pound, meanwhile, was down against the euro and down against the yen, with EUR/GBP up 0.06% at 0.8624 and GBP/JPY down 0.45% at 152.87.

On Friday, the U.S. will release a revised Thomson Reuters/University of Michigan gauge on consumer sentiment.









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