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Forex - GBP/USD trims losses after Bullard remarks

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Forex Pros - The pound trimmed losses against the U.S. dollar on Thursday, clawing back up from a five-day low after St. Louis Federal Reserve President James Bullard said the U.S. central bank could stretch its quantitative easing program into a third round.

GBP/USD clawed back up from 1.6085, the pair's lowest since February 17; to hit 1.6119 during European late afternoon trade, shedding 0.56%.

Cable was likely to find support at 1.5986, the low of February 16 and resistance at 1.6274, Wednesday's high and a three-week high.

The greenback was weighed by concerns that higher oil prices could drag on the U.S. economic recovery.

Earlier in the day, London Brent crude futures jumped 5.6% to trade above USD117 a barrel after touching a 29-month high of USD119.79, while U.S. crude futures surged 4.3% to above USD102 a barrel.

U.S. government data showed earlier that initial jobless claims fell more-than-expected last week, suggesting an improvement in the labor market.

A separate report showed that U.S. durable goods orders rose less-than-expected in January, while core durable goods orders, which exclude transportations items, tumbled unexpectedly.

Also Thursday, official data showed that U.S. new home sales fell more-than-expected in February.

The pound was also down against the euro, with EUR/GBP soaring 0.89% to hit 0.8555.

Earlier Thursday, U.K. industry data showed that retail sales growth slowed more than expected in February to its weakest since last June.

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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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