Forex Pros – The pound edged higher against the U.S. dollar on Thursday, rising to a two-week high as risk aversion eased, bolstering demand for riskier assets.
GBP/USD hit 1.6334 during European morning trade, the pair’s highest since May 12; the pair subsequently consolidated at 1.6297, gaining 16%.
Cable was likely to find support at 1.6130, Wednesday’s low and short-term resistance at 1.6379, the high of May 12.
The pound strengthened broadly on Wednesday, after official data showed U.K. exports helped the economy resume growth in the first quarter, outweighing the biggest slump in consumer spending in almost two years.
Meanwhile, data showing U.S. durable goods orders for April dropped 3.6% compared with a forecast for a 2.1% decline, underlined the view that the Federal Reserve will put off raising interest rates for some time to come.
Elsewhere, the pound was down against the euro, with EUR/GBP climbing 0.48% to hit 0.8698.
Later Thursday, Bank of England Deputy Governor Paul Tucker was to speak, while the U.S. was to publish revised government data on first quarter economic growth as well as a weekly report on initial jobless claims.
ForexPros.com
