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Forex - GBP/USD remains higher despite U.K. data

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Investing.com - The pound remained higher against the U.S. dollar on Thursday, after the release of disappointing U.K. data, as investors eyed U.S. budget talks, due to resume later in the day.

GBP/USD hit 1.6167 during European morning trade, the session high; the pair subsequently consolidated at 1.6165, adding 0.17%.

Cable was likely to find support at 1.6108, Wednesday's low and resistance at 1.6206, the high of December 24.

Industry data showed that mortgage approvals in the U.K. rose less-than-expected in November, increasing by 33,600 after a 33,100 rise the previous month. Analysts had expected mortgage approvals to rise by 34,600 in November.

Meanwhile, market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

President Barack Obama was to end his vacation and return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline. Both chambers of Congress are also due to return to work on Thursday.

Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

Sterling was lower against the euro with EUR/GBP adding 0.19%, to hit 0.8209.

Later in the day, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on new home sales and consumer confidence.

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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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