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Forex - GBP/USD tumbles to 9-day low after weak U.S. trade, jobs data

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Forex Pros - The pound extended losses against the U.S. dollar on Thursday, tumbling to a nine-day low after worse-than-expected U.S. trade and employment data added to an air of overall risk aversion.

GBP/USD hit 1.6051 during European late afternoon trade, the pair's lowest since February 25; the pair subsequently consolidated at 1.6054, tumbling 0.90%.

Cable was likely to find support at 1.6070, the low of February 28 and resistance at 1.5962, the low of February 11.

Earlier in the day, government data showed that the U.S. trade deficit widened sharply in January, to its highest level in seven months, as surging oil prices helped overwhelm a gain in exports to all-time highs.

The U.S. trade deficit jumped 15.1% to USD46.34 billion from a downwardly revised USD40.26 billion the month before, the Commerce Department said. Analysts had expected the trade deficit to widen to USD41.50 billion.

A separate report said that U.S. initial jobless claims rose more-than-expected last week, but the level remained consistent with a slowly improving labor market.

The Labor Department said the number of individuals filing for initial jobless benefits in the week ending March 5 rose to a seasonally adjusted 397K, surpassing expectations for an increase to 382K.

The pound was also down against the euro, with EUR/GBP easing up 0.11% to hit 0.8594.

Also Thursday, the Bank of England's Monetary Policy Committee left interest rates on hold at a record low of 0.5% in a widely expected decision while official data showed that manufacturing activity in the U.K. accelerated at its strongest pace in 10 months in January.

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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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