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Forex - GBP/USD hits daily high after Osborne comments

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Forexpros - The pound rose to a fresh daily high against the U.S. dollar on Thursday, as upbeat comments from U.K. Chancellor George Osborne and a report showing U.S. jobless claims fell to a four-month low last week boosted sentiment.

GBP/USD hit 1.6229 during U.S. morning trade, a daily high; the pair subsequently consolidated at 1.6230, gaining 0.59%.

Cable was likely to find support at 1.6110, the daily low and a three-week low and resistance at 1.6334, Wednesday's high.

U.K. Chancellor of the Exchequer George Osborne said earlier that U.K. lenders held enough capital and liquidity to whether the recent turmoil in financial markets.

"I can confirm that the assessment of the Bank (of England), the FSA and the Treasury is that British banks are sufficiently well capitalized and are holding enough liquidity to be able to cope with the current market turbulence," he said.

In a special parliament session, Osborne reiterated that the U.K. must stick to its harsh austerity measures, while leaders from the single currency bloc needed to do whatever it takes to prevent the region's debt crisis from worsening.

The chancellor added that the break up of the euro would be "economically disastrous" for the countries involved and for the U.K.

Meanwhile, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending August 5 fell by 7,000 to a seasonally adjusted 395,000, outstripping expectations for a decline to 401,000.

It was the lowest level since mid-April, helping to ease concerns over the U.S. economic outlook.

A separate report showed that the U.S. trade deficit widened unexpectedly to USD53.1 billion in June, the largest deficit in almost three years.

Elsewhere, the pound was also up against the Swiss franc, with GBP/CHF surging 5.6% to hit 1.2377, amid speculation the SNB might link the franc to the euro.

Swiss National Bank Vice President Thomas Jordan said earlier that a temporary tie between the Swiss franc and the euro would be legal under the SNB's mandate.

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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.

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