Forex Pros – The euro remained down against the pound on Wednesday, despite official data showing that the number of people in the U.K. claiming unemployment benefits rose at the fastest pace in almost two years last month.
EUR/GBP hit 0.8796 during European morning trade, the pair’s lowest since June 2; the pair subsequently consolidated at 0.8786, down 0.39%
The pair was likely to find support at 0.8743, the low of June 1 and resistance at 0.8843, Tuesday’s high.
The U.K. Office for National Statistics said that the claimant count posted the largest increase since July 2009, rising by a seasonally adjusted 19,600 in May, after increasing by an upwardly revised 16,900 in April.
Analysts had expected the claimant count to rise by 6,500 in May.
Meanwhile, the unemployment rate held steady in April at 7.7%, broadly in line with expectations.
The report also said that the average earnings index rose less-than-expected in April, climbing by a seasonally adjusted 1.8%, below expectations for a 2.1% increase.
The euro remained under pressure after ratings agency Moody’s placed three of Frances largest lenders under review, pending possible downgrades due to their exposure to Greek debt.
Meanwhile, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.43% to hit 1.6298.
Later in the day, the U.S. was to publish official data on consumer price inflation, as well as reports on foreign investment, industrial production and manufacturing activity.
ForexPros.com
