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by ForexNewsNow Team on August 11, 2010

U.K. jobs data sends pound to fresh daily low against dollar

NEW YORK (Forex News Now) – The pound sank to a fresh daily low against the dollar on Wednesday, after official data showed that the number of Britons claiming unemployment benefits fell by far less than expected in July.

In European morning currency trading, GBP/USD struck 1.5755, the daily low. The currency pair later rose slightly to trade at 1.5788, down 0.41 percent on the day.

Britain’s statistics bureau, National Statistics, said in a report that the claimant count dropped by 3,800 during the month, after a drop of 20,800 in June. Analysts had expected a more substantial decline of 17,000 in June, two major forex news outlets reported.

According to forex analysis, GBP/USD is likely to touch immediate support around the low of July 30, 1.5551, and encounter resistance around the high of Aug. 6, 1.5998.

Sterling’s losses also came after the Federal Reserve said the U.S. economic recovery will be “more modest” than anticipated and announced plans to reinvest proceeds from maturing mortgage bonds into government debt.

Elsewhere, the pound slid versus the yen: GBP/JPY traded at 134.55, down 0.66 percent.

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