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Forex - GBP/USD gains on upbeat U.K. employment report

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Investing.com -

Investing.com - The pound moved higher against the dollar on Wednesday after data revealed fewer individuals received unemployment assistance in May than markets were anticipating.

In U.S. trading on Wednesday, GBP/USD was trading up 0.27% at 1.6802, from a session low of 1.6739 and off a high of 1.6808.

Cable was likely to find support at 1.6699, the low from June 4, and resistance at 1.6845, Friday's high.

The claimant count, or number of people receiving jobless benefits fell by 27,400 in May, beating for a for a decline of 25,000 people. April's figure was revised to a drop of 28,400 from 25,100.

The data added to the view that the Bank of England will raise interest rates ahead of other central banks as the economic recovery continues to gather momentum, which gave the pound an edge over the greenback.

Meanwhile in the U.S., Treasury yields continued to climb on Wednesday, though they came off earlier highs, as markets prepped for the possibility that the Federal Reserve may hike interest rates sooner than once expected.

Fed officials have said rate hikes will come sometime after the U.S. central bank concludes its bond-buying program, which is seen taking place this year.

However, uncertainty as to how much time will elapse between the end of Fed stimulus programs and a decision to raise benchmark interest rates boosted the dollar over the euro, as many feel the economy continues to shake off the dust from rough winter weather and pick up its pace of recovery, which could prompt the U.S. central bank to act.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.38% at 0.8054, and down against the yen, with GBP/JPY down 0.10% at 171.34.

On Thursday, the U.S. is to release the weekly report on initial jobless claims, in addition to data on retail sales and import prices.

Bank of England Governor Mark Carney is to speak at an event in London.

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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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