Forexpros – The pound held gains against the U.S. dollar on Wednesday, remaining close to a two-week high, despite official data showing that the unemployment level in the U.K. rose to its highest level in almost 17 years last month.
GBP/USD hit 1.5692 during European morning trade, the pair’s highest since September 29; the pair subsequently consolidated at 1.5681, gaining 0.67%.
Cable was likely to find support at 1.5526, Monday’s low and resistance at 1.5746, the high of September 21.
The Office for National Statistics said the number of people in the U.K. claiming unemployment benefit rose by 17,500 last month. Analysts had forecast a rise of 24,000.
But the ONS said the unemployment rate ticked up to 8.1% from August, the highest level since October 1996, confounding expectations for the rate to remain unchanged at 7.9%.
The report also said that the average earnings index rose more-than-expected in August, climbing by a seasonally adjusted 2.8%, slightly above expectations for a 2.7% gain.
The weak employment data added to concerns over economic conditions in the U.K. after the Bank of England announced last week that it is to restart its asset purchase program, in an attempt to shore up the ailing economy.
But the pound remained supported amid optimism over signs of progress in tackling the debt crisis in the euro zone after officials said Greece looks likely to receive the next tranche of its bailout early next month.
Elsewhere, the pound was down against the euro, with EUR/GBP rising 0.27% to hit 0.8779.
Later in the day, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament. Meanwhile, the U.S. was to publish the minutes of the Federal Reserve’s most recent policy-setting meeting.
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