Investing.com - The pound held steady against the dollar on Thursday as concerns the Russia-Ukraine conflict is flaring up anew offset upbeat U.S. economic indicators.
Geopolitical concerns often weaken the dollar by stoking fears that military conflicts will weigh on the global economy and drag on U.S. recovery as a consequence.
In U.S. trading on Thursday, GBP/USD was up 0.01% at 1.6577 up from a session low of 1.6567 and off a high of 1.6614.
Cable was likely to find support at 1.6537, Wednesday's low, and resistance at 1.6738, the high from Aug. 18.
The dollar saw support earlier after a bout of upbeat U.S. economic indicators pointed to a more sustained recovery in the world's largest economy.
The U.S. gross domestic product grew at a revised annualized rate of 4.2% in the second quarter of this year, according to the Commerce Department, up from a preliminary estimate of 4.0% and better than market forecasts for a downward revision to 3.9%.
The numbers firmed the dollar by cementing expectations that the Federal Reserve will close its bond-buying program around October and hike benchmark interest rates some time in 2015, possibly sooner than once anticipated.
Elsewhere, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Aug. 22 declined by 1,000 to 298,000 from the previous week’s revised total of 299,000.
Analysts were expecting the figure to rise by 1,000 instead of contract by that amount, which gave the greenback added support.
A separate report showed that U.S. pending home sales increased by 3.3% last month, beating expectations for a 0.5% rise. June's figure was revised to a 1.3% drop from a previously estimated decline of 1.1%.
The greenback, however, came under pressure on fears the Ukraine crisis may be escalating anew.
A top Ukrainian military official was reported as saying earlier that a "full-scale invasion" was taking place in the country, while separate reports that up to 1,000 Russian troops were in Ukraine to assist pro-Russian rebels eclipsed U.S. data and softened the greenback.
The U.S. has repeatedly said Russia has been meddling in the fighting in eastern Ukraine, a charge Moscow denies.
Elsewhere, sterling was up against the euro, with EUR/GBP down 0.13% at 0.7950, and down against the yen, with GBP/JPY down 0.08% at 172.05.
On Friday, expect the pair to move on U.S. personal spending and income reports, a Chicago-area factory gauge and consumer sentiment figures.