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Forex - GBP/USD slips to session low after mixed U.S. data

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Forex Pros - The pound slipped to a fresh daily low against the U.S. dollar on Thursday, after the Bank of England kept interest rates unchanged and following the release of mixed U.S. economic data.

GBP/USD hit 1.6360 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.6367, shedding 0.21%.

Cable was likely to find support at 1.6383, the low of June 3 and resistance at 1.6546, the high of May 31 and a one-month high.

The BoE left its official cash rate unchanged at a record low of 0.5% for the 27th consecutive month earlier in the day, as a recent flurry of weaker-than-expected economic data overshadowed concerns about above target inflation.

Meanwhile, the U.S. Commerce Department said the trade deficit declined 6.7% to USD43.68 billion in April, from a downwardly revised USD46.82 billion the month before. The March trade gap was originally reported as USD48.18 billion.

A separate report showed that U.S. initial unemployment claims increased by 1,000 to a seasonally adjusted 427,000 in the week ended June 4. The prior week's figure was revised to 426,000 from an originally reported 422,000.

Analysts had expected claims to fall to 423,000 last week.

Elsewhere, the pound was up against the euro, with EUR/GBP shedding 0.32% to hit 0.8861.

Earlier Thursday, European Central Bank President Jean-Claude Trichet said that "strong vigilance" on inflation was warranted after the bank kept interest rates on hold at 1.25%, signaling that the bank may hike rates after its July policy setting meeting.

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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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