Forex - GBP/USD remains lower after flurry of U.S. data

Shutterstock photo

Forexpros - The pound was down against the U.S. dollar on Thursday, falling to a fresh daily low as escalating fears over the global economic outlook saw risk aversion sharpen, boosting demand for the safe-haven greenback.

GBP/USD hit 1.6419 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.6467, shedding 0.46%.

Cable was likely to find support at 1.6322, the low of August 16 and resistance at 1.6591, Wednesday's high and a three-month high.

The Federal Reserve Bank of Philadelphia said earlier that its manufacturing index plunged by 33.9 points to minus 30.7 in August, the lowest level since March 2009. Analysts had expected the index to increase to 3.9 in August from 3.2 in July.

Separately, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending August 12 rose by 9,000 to a seasonally adjusted 408,000, higher than the expected increase of 400,000.

The previous week's figure was revised up to 399,000 from 395,000.

Meanwhile, the National Association of Realtors said that existing home sales declined by 3.5% to a seasonally adjusted 4.67 million units in July, an eight-month low, confounding expectations for a gain of 2.7% to 4.90 million units.

A separate report showed that the U.S. core consumer price inflation rose 0.2% in July, in line with market expectations, while consumer prices including food and energy costs rose 0.5% last month, above expectations for a 0.2% increase.

Elsewhere, the U.K. Office for National Statistics said earlier that retail sales rose by 0.2% in July, below expectations for a 0.3% gain, as demand at clothes and household-goods stores declined.

The previous month's figure was revised up to a gain of 0.8% from a previously reported 0.7% increase.

The downbeat retail sales data underscored concerns over the U.K. economic recovery, following Wednesday's dismal employment report, and boosted speculation the Bank of England will introduce further easing measures to prop up the faltering economy.

Meanwhile, the pound was up against the euro, with EUR/GBP dipping 0.34% to hit 0.8691.

Also Thursday, Wall Street investment bank Morgan Stanley cut its outlook for global economic growth for 2012, citing an "insufficient policy response to Europe's sovereign debt crisis, weakened confidence and the prospect of fiscal tightening".

The investment bank added that the U.S. and Europe are "dangerously close to recession."

Forex News

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.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.