Pound advances against dollar on U.S. jobs, U.K. PPI data

ForexNewsNow | Published on October 8, 2010 at 1:54 pm

GBP USD analysis - a heap of poundsNEW YORK (Forex News Now) – Sterling advanced against the dollar on Friday, approaching an 8-month high, on the back of an upbeat report on U.K. producer price inflation and worse-than-expected U.S. jobs data.

In New York afternoon currency market trading, GBP/USD hit 1.5947, up 0.44 percent on the day, close to Thursday’s 8-month high of 1.6018.

Britain’s statistics bureau said earlier that U.K. manufacturers’ raw material costs rose almost twice as fast as expected in September, climbing 0.7 percent from August.

The data coincided with a report in The Guardian that British retailers have sounded a cautious note on the outlook for consumer spending but sought to quash fears of a “double-dip” recession in the UK, after John Lewis reported a 11.1% rise in sales in the week to 2 October, with sales in its department stores up 13.9%.

According to GBP USD analysis, cable was likely to touch support around Wednesday’s low, 1.5751, and encounter immediate resistance around 1.6018.

Also Thursday, the Labor Department said earlier that hiring by U.S. businesses in September slowed significantly while government jobs disappeared at a record pace. During the month, the U.S. economy unexpectedly shed 95,000 nonfarm jobs, the data showed.

Elsewhere, sterling fell slightly versus the yen: GBP/JPY traded at 130.83, down 0.02 percent, according to intraday analysis.

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