Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

GBP/USD falls on soft U.K. service-sector data

Published 04/03/2014, 12:25 PM
Updated 04/03/2014, 12:27 PM
Pound slumps on soft U.K. service-sector report

Investing.com - The pound slid against the dollar on Thursday after U.K. service-sector data missed expectations.

In U.S. trading on Thursday, GBP/USD was trading at 1.6582, down 0.26%, up from a session low of 1.6570 and off a high of 1.6661.

Cable was likely to find support at 1.6466, the low from March 24, and resistance at 1.6684, Monday's high.

Industry data released earlier revealed that the U.K. service-sector purchasing managers' index fell to 57.6 in March from 58.2 in February, missing analysts' expectations for a 58.1 reading, which softened the pound against the greenback despite lackluster U.S. data.

In the U.S. earlier, the Labor Department reported that the number of individuals filing for unemployment assistance last week increased by 10,000 to 326,000 from the previous week’s revised total of 310,000.

Analysts had expected jobless claims to rise by 7,000 to 317,000 last week.

Meanwhile, the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to 53.1 in March from 51.6 in February, missing expectations for a reading of 53.5.

A separate report showed that the U.S. trade deficit unexpectedly widened to $42.3 billion in February from a deficit of $39.28 billion the previous month.

Analysts had expected the U.S. trade deficit to narrow to $38.5 billion.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.17% at 0.8268, and down against the yen, with GBP/JPY down 0.19% at 172.37.

The euro came under pressure against most major currencies after European Central Bank President Mario Draghi said monetary authorities were ready to release fresh stimulus measures to ward off deflationary pressures if needed.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

On Friday, the U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.