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Forex - GBP/USD steady as U.S. data eyed

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Investing.com - The pound was slightly higher against the U.S. dollar on Thursday as investors awaited a string of U.S. economic data, while markets remained subdued amid growing uncertainty over whether a deal on the U.S. fiscal cliff will be reached.

GBP/USD hit 1.6280 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6259, inching up 0.10% .

Cable was likely to find support at 1.6193, Tuesday's low and resistance at 1.6305, Wednesday's high and a three-month high.

Investors remained cautious amid growing doubts over whether a deal to avoid the U.S. fiscal cliff will be reached ahead of the January 1 deadline, fuelling concern that automatic tax hikes and spending cuts will be triggered.

In the U.K., official data showed that retail sales were flat in November, compared to expectations for a 0.3% increase.

Retail sales for October were revised down to a 0.7% decline from a previously reported fall of 0.6%, the largest drop in six months.

Year-on-year, retail sales rose at an annualized rate of 0.9% in November, below expectations for a 1.5% increase, after rising at a revised rate of 0.8% in the preceding month.

Trade was expected to remain subdued on Thursday, as markets wound down ahead of the Christmas holidays.

Sterling was fractionally lower against the euro, with EUR/GBP edging up 0.07% to 0.8146.

The U.S. was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and data on manufacturing activity in Philadelphia later in the trading day. In addition, the U.S. was to publish industry data on existing home sales.

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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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