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Forex - GBP/USD edges higher after U.K. data, but gains capped

By Investing.com  |  Forex News  |  Mar 08, 2013 09:59AM GMT  |   Add a Comment
 
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Investing.com - The pound edged higher against the U.S. dollar on Friday, after the release of U.K. inflation expectations data, as markets remained jittery ahead of a key U.S. employment report, expected later in the day.

GBP/USD hit 1.5034 during European morning trade, the session high; the pair subsequently consolidated at 1.5027, edging up 0.08%.

Cable was likely to find support at 1.4968, Thursday's low and resistance at 1.5154, the high of March 6.

Forex - GBP/USD edges higher after U.K. data, but gains capped
The Bank of England said that consumer inflation expectations ticked up to 3.6% in the fourth quarter, from 3.5% in the previous quarter.

The report came after Bank of England policymakers voted on Thursday to leave interest rates on hold at a record low 0.5% and keep the size of its asset purchase program unchanged at GBP375 billion.

Concerns over the outlook for the recession hit U.K. economy have weighed heavily on sterling so far this year and bolstered expectations for more quantitative easing by the BoE.

Meanwhile, the greenback remained supported after the Department of Labor on Thursday said that the number of individuals filing for initial jobless benefits fell by 7,000 to a seasonally adjusted 340,000 last week, compared to expectations for an increase of 8,000 to 355,000.

The upbeat data fuelled optimism over a recovery in the U.S. labor market.

Sterling was higher against the euro with EUR/GBP slipping 0.19%, to hit 0.8714.

Later in the day, the U.S. was publish government data on nonfarm payrolls and the unemployment rate, as well as data on average hourly earnings.



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