Wednesday, 8th July 2020

GBP remains high against USD

Published:  20 Jan at 2 PM
The pound remained high against the US dollar on Thursday, as reported by Forex Rate It!, after a number of mainly upbeat US data while investors kept their focus on the result of fresh Greek bailout talks.

The GBP hit 1.5475 against the USD during US morning trade, which was the pair’s highest rate since 11 January. The pair then consolidated at 1.5463, an addition of 0.15 per cent. Cable looked likely to find support around 1.5395, the recorded low of 9 January, and resistance at 1.5500, which was the high of 10 January.

Sentiment was supported in the wake of official data showing that the amount of people who submitted the forms for unemployment assistance across the US last week declined to 352,000, which was entirely unexpected, falling to its lowest level in almost four years. The data came after there were reports that showed the number of building permits issued in the US remained unchanged at 0.68 million throughout December, holding near the highest level recorded since March of 2010.

Elsewhere, housing starts increased less-than-expected. Data also managed to show that consumer price inflation improved by 0.1 per cent in December, which matched expectations after the 0.2 per cent rise of the previous month. Also in December, consumer price inflation managed to remarkably confounding expectations of a 0.1 per cent rise.

Analysts say that the Sterling found support after well-received debt-auctions from the Spanish and French governments. In the meantime, Greek PM Lucas Papademos is in his second day of holding talks with his country’s creditors.