Shutterstock photo
Markets

Forex - USD/GBP close to 6-week low ahead of U.K. retail data

Shutterstock photo

Shutterstock photo

Forex Pros - The pound was hovering close to a six-week low against the U.S. dollar on Thursday, after a mixed U.K. employment report and a slightly dovish tone to Bank of England policy minutes on Wednesday further dampened expectation for a near-term rate hike.

GBP/USD hit 1.6132 during European morning trade, the daily low; the pair subsequently consolidated at 1.6135, slipping 0.19%.

Cable was likely to find support at 1.5970, the low of April 1 and resistance at 1.6287, Wednesday's high.

Data on Wednesday showed that the number of people claiming unemployment benefit in the U.K. unexpectedly rose in April, posting its biggest rise in more than a year but the unemployment rate dipped unexpectedly in March.

Meanwhile, the minutes of the BoE's May meeting showed an unchanged 6-3 majority seeing no need for an increase in U.K. interest rates, but two policy hawks, Spencer Dale and Martin Weale, said their decisions were finely balanced.

The pound was also down against the euro, with ERUR/GBP inching up 0.04% to hit 0.8816.

Later in the day, the U.K. was to publish official data on retail sales, while the U.S. was to publish its weekly report on initial jobless claims as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.

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.

Other Topics

ForEx

Latest Markets Videos