Forex - GBP/USD trims gains after U.S. data

The pound trimmed gains against the U.S. dollar on Thursday, after the release of positive U.S. data eased expectations for a near-term end to the Federal Reserve's stimulus program, lending support to the greenback. 

GBP/USD pulled away from 1.5594, the pair's highest since June 19, to hit 1.5552 during U.S. morning trade, still up 0.34%. 

Cable was likely to find support at 1.5423, Wednesday's low and resistance at 1.5677, the high of June 19. 

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000. 

A separate report showed that U.S. consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts. Core consumer prices, excluding food and energy costs, also rose 0.2%, matching forecasts.

The data reinforced the view that the economic recovery is strong enough for the U.S. central bank to start winding up its USD85 billion-a-month asset purchase program later this year.

The greenback shrugged off data showing that U.S. industrial production was flat in July, missing expectations for a 0.3% increase.

Other reports showed that manufacturing activity in the Philadelphia-region expanded at the slowest pace in four months in August, while manufacturing activity in the Empire state fell unexpectedly. 

The pound strengthened earlier, after the Office for National Statistics said retail sales climbed by a seasonally adjusted 1.1% in July, beating expectations for a 0.6% gain after a 0.2% increase in June.

Retail sales were 3% higher from a year earlier, beating expectations for a 2.5% gain, after rising at an annual rate of 1.9% in June.

Core retail sales, which exclude automobile sales, rose 1.1% in July, above forecasts for a 0.6% gain, after increasing 0.3% in the preceding month.

Sterling was higher against the euro with EUR/GBP retreating 0.46%, to hit 0.8511.