FX: Pound climbs vs. dollar after U.S. jobless claims data
Forex Pros – The pound climbed against the U.S. dollar on Thursday, after official data showed that the number of U.S. workers filing new applications for unemployment insurance fell less than expected last week.
GBP/USD hit a daily high of 1.5281 following the release of the U.S. Labor Department report, which showed that initial claims for state unemployment benefits dropped 11,000 to a seasonally adjusted 448,000 in the week ended April 24. Economists had expected a drop of 19,000.
Cable later consolidated around 1.5257, gaining 0.33%. The pair was likely to find support at 1.5043, the low of March 31, and resistance at 1.5523, the high of April 15.
Sterling's rebound against the greenback came after it plunged to a 1-month low on Wednesday, amid fears that the euro zone's sovereign debt crisis could spread to Britain after Spain's credit rating was downgraded.
The pound also rose versus the yen on Thursday, with GBP/JPY advancing 0.34% to hit 143.49.
Meanwhile, traders awaited the final TV debate later Thursday between Britain's prime ministerial candidates, which will focus on the embattled British economy.
Earlier in the day, data from Britain's biggest building society, Nationwide, showed that house prices rose 1% in April, taking the annual rate of inflation into double figures for the first time since June 2007.
