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Pound rose to one-month high against the US dollar on Thursday after Wednesdays series of economic data from the United States implied that economic recovery was not strong enough.

GBP/USD reached 1.5455 during early European trade, currently the session high and highest since May 10th, after which consolidation followed at 1.5444. The pair was up by 0.25% for the day. Support was expected at current session low, 1.5380, while resistance was to be encountered at May 9th high, 1.5586.

US dollar remained under pressure after Wednesdays disappointing ADP Employment report, that stated US non-farm private sector opened 135 000 job positions, far below the projected 165 000 job posts. This news dimmed expectations that FED would begin reduction of scale of its asset purchasing program later this year.

British pound found support on data, which showed Halifax Bank of Scotland (HBOS) House Prices indicator in UK rose by 2.6% in May on annual basis, slightly above expectations for a 2.5% rise, while the growth in prices was 2.0% during the previous period.

Additionally, on Wednesday it was reported that Services CIPS indicator increased by the fastest rate since March 2012 in May, reaching 54.9, beating expectations for a value of 53.1. UK services sector recorded expansion during the preceding period, as the CIPS indicator was at the 52.9 level. These news bolstered projections that Bank of England would leave its current monetary policy course intact at its meeting later on Thursday. Additional positive signal came earlier this week, as UK manufacturing and construction CIPS indicators registered better than expected results.

 

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