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Forex - GBP/USD slips lower despite U.K. data

Published 17/08/2016, 09:53
© Reuters.  Pound moves lower vs. greenback even after positive U.K. data
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Investing.com - The pound slipped lower against the U.S. dollar on Wednesday, despite the release of upbeat U.S. employment data as new hopes for an upcoming rate hike by the Federal Reserve boosted demand for the greenback.

GBP/USD hit 1.3011 during European morning trade, the session low; the pair subsequently consolidated at 1.3015, shedding 0.24%.

Cable was likely to find support at 1.2871, Tuesday’s low and resistance at 1.3178, the high of August 5.

The U.K. Office for National Statistics said the unemployment rate remained at 4.9% in the three months to June, in line with forecasts.

The claimant count fell by 8,600 in July, compared to expectations for a increase of 9,500 people, and following an advance of 900 a month earlier.

Meanwhile, the average earnings index, including bonuses, rose by 2.4% in the three months to June, in line with forecasts and after increasing by 2.3% in the three months to May.

Excluding bonuses, wages rose by 2.3%, also in line with the consensus estimate and following a 2.2% increase in the three months to May.

But the greenback remained broadly stronger after Atlanta Federal President President Dennis Lockhart said on Tuesday that two rate hikes in 2016 were a possibility.

The comments came shortly after New York Fed head William Dudley said that the U.S. central bank might raise rates as soon as its September policy meeting.

Sterling was steady against the euro, with EUR/GBP at 0.8651.

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