Forexpros - The pound remained lower against the U.S. dollar on Thursday, after data showed that unemployment claims fell less-than-expected last week in the U.S. while risk sentiment remained under pressure amid sustained euro zone debt concerns.
GBP/USD hit 1.5805 during U.S. morning trade, the pair’s lowest since March 26; the pair subsequently consolidated at 1.5834, retreating 0.35%.
Cable was likely to find support at 1.5769, the low of March 22 and resistance at 1.5916, Wednesday’s high.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending March 31 fell to 357,000, falling short of expectations for a decline to 355,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 21 of the past 23 weeks.
Meanwhile, sentiment vulnerable as Spain’s borrowing costs continued to rise following Wednesday’s poorly received government bond auction. The yield on the country’s 10-year bond climbed to 5.83% earlier, the highest level since mid-December.
Concerns over the outlook for growth in the euro zone also mounted following a recent string of weak economic data, including a report showing earlier Thursday that German industrial production dropped 1.3% in February, more than expectations for a 0.5% fall.
The data came one day after European Central Bank President Mario Draghi warned that "downside risks to the economic outlook prevail" after the central bank kept its benchmark interest rate unchanged at a record low of 1%.
In the U.K., the Bank of England kept its benchmark interest rate unchanged at a record low 0.5%, in a widely expected decision and announced no change to the size of its asset purchase facility which stands at GBP325 billion, following a GBP50 billion increase in February.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.28%, to hit 0.8250.
Also Thursday, the Office for National Statistics said that manufacturing production in the U.K. fell by 1.0% in February and the previous month’s figures was revised down to show a drop of 0.3%, giving an annual decline of 1.4%.
