Forex Pros – The pound extended losses against the U.S. dollar on Wednesday, after official data showed that the number of people in the U.K. claiming unemployment benefits rose at the fastest pace in almost two years last month.
GBP/USD hit 1.6249 during European early afternoon trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.6268, shedding 0.62%.
Cable was likely to find short-term support at 1.6212, the low of June 10 and a more than two-week low and resistance at 1.6382, the days high.
The U.K. Office for National Statistics said earlier 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.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.28% to hit 0.8796.
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
