GBP/USD extends gains after US data

FXStreet (Córdoba) - Pound is among the best performers on Thursday, with GBP/USD climbing to a 6-week high and EUR/GBP hitting a fresh 7-year low, underpinned by a relatively hawkish BoE Quarterly Inflation Report.

GBP/USD broke above previous monthly highs around 1.5350 and extended gains to its highest level since Jan 2 at 1.5387 following a string of disappointing US data.

In the US data front, initial jobless claims rose more than expected by 25,000 to 304,000 in the week ending Feb 6, while retail sales fell by 0.8% in January, versus a drop of 0.5% expected.

GBP/USD levels to watch

At time of writing, Cable is trading at 1.5380, from 1.5355 pre data, where it records a 1.0% gain so far on the day. Immediate resistances are seen at 1.5400 (psychological level) and 1.5485 (Dec 24 low). On the other hand, supports could be found at 1.5351/48 (Feb 6 high/50-day SMA) and 1.5300 (psychological level).

Weak EUR to boost eurozone inflation by 1.0% in 3-years – Danske

Pernille Bomholdt Nielsen, SeniorAnalyst at Danske Bank, comments on the oil related effects in the eurozone in terms of inflation and consumer purchases, and further anticipates the weak EUR to boost eurozone GDP & inflation.
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US retail sales increase 3.3 percent YoY

The US Census Bureau announced today that advance estimates of US retail and food services sales for January, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $439.8 billion, a decrease of 0.8 percent (±0.5 percent) from the previous month, but up 3.3 percent (±0.9 percent) above January 2014. Total sales for the November 2014 through January 2015 period were up 3.8 percent (±0.7 percent) from the same period a year ago.
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