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Forex - GBP/USD up after mixed U.K. employment data

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Forex Pros - The pound held gains against the U.S. dollar on Wednesday, after a government report showing an unexpected fall in the number of Britons claiming unemployment benefit but an increase in the overall unemployment rate.

GBP/USD hit 1.6131 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.6106, rising 0.17%.

Cable was likely to find support at 1.5977, Tuesday's low and resistance at 1.6184, Tuesday's high.

The Office for National Statistics said the number of people claiming jobless benefit fell by 10,200 last month, its biggest monthly drop since June. Analysts had forecast a rise of 1,000.

However, the report said that a broader measure of unemployment rose to an eight-month high. The number of people without a job rose by 27,000 in the fourth quarter to 2.529 million. That took the jobless rate to a 10-month high of 8.0%, compared with forecasts for a steady reading of 7.9%.

The pound was also higher against the euro, with EUR/GBP shedding 0.44%to hit 0.8666.

Later in the day, the U.S. was to publish a flurry of data, with reports on building permits as well as data on producer price inflation, housing starts and crude oil stockpiles.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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