Forex - GBP/USD slips lower in quiet trade

Posted on at - The pound slipped lower against the U.S. dollar in quiet trade on Thursday, pulling away from a two-week high as the greenback began to bounce back from Wednesday's disappointing U.S. economic reports.

Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.

GBP/USD hit 1.5748 during European morning trade, the session low; the pair subsequently consolidated at 1.5759, shedding 0.21%.

Cable was likely to find support at 1.5647, the low of November 25 and resistance at 1.5889, the high of November 7.

The dollar weakened broadly on Wednesday after data showed that U.S. initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected.

Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.

Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.

The pound earlier rose to two-week highs against the greenback, still supported by a report on Wednesday confirming that the U.K. economy grew 0.7% in the July-to-September period, and expanded 3.0% on a year-over-year basis, in line with the preliminary estimates released last month.

Sterling was higher against the euro, with EUR/GBP edging down 0.10% to 0.7911.

The euro found some support after data showed that the number of unemployed people in Germany declined for the second consecutive month in November, while the country’s jobless rate held steady at a record low.

Germany's Federal Statistics Office said the number of unemployed people fell 14,000 this month, compared to expectations for a drop of 1,000.

Germany’s unemployment held steady at 6.6% in November, unchanged from October and compared to expectations for a rise to 6.7%.

Separate reports showed that Spain's consumer prices fell by 0.4% this month, compared to expectations for a 0.3% decline, while the country's gross domestic product rose 0.5% in the third quarter, in line with expectations.


Forex - GBP/USD slips lower in quiet trade



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