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Forex - GBP/USD pushes higher, but gains remain limited

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Investing.com - The pound extended gains against the U.S. dollar on Thursday, although the release of strong U.S. jobless data added to signs of a strong U.S. economic recovery, supporting demand for the greenback.

GBP/USD hit 1.5038 during U.S. morning trade, the pair's highest since March 8; the pair subsequently consolidated at 1.5014, climbing 0.61%.

Cable was likely to find support at 1.4830, Tuesday's low and the pair's lowest since June 2010 and resistance at 1.5046, the high of March 8.

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 10,000 to a seasonally adjusted 332,000, last week compared to expectations for an increase of 8,000 to 350,000.

The unexpectedly strong data, together with recent stronger-than-forecast data on nonfarm payrolls and retail sales fuelled optimism over the durability of the U.S. economic recovery.

Meanwhile, the pound remained under pressure after data earlier in the week showing that U.K. manufacturing and industrial output slumped in January reinforced concerns over the threat of a triple dip recession and the risk of further easing by the Bank of England.

Sterling was higher against the euro with EUR/GBP dropping 0.56%, to hit 0.8637.

Also Thursday, official data showed that employment in the euro zone dropped 0.3% in the fourth quarter from the third, reinforcing concerns over the economic outlook for the region.

In its monthly bulletin on Thursday the European Central Bank said the euro zone economy is expected to recover gradually later this year, but risks to the recovery remained if governments failed to implement structural reforms.

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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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