Forex - GBP/USD remains moderately lower after U.S. data

The pound remained moderately lower against the U.S. dollar on Thursday, as the release of mostly strong U.S. economic reports supported demand for the greenback.

GBP/USD hit 1.6636 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6661, down 0.11%.

Cable was likely to find support at 1.6600, the low of February 13 and resistance at 1.6755, the high of February 14.

The Federal Reserve Bank of Philadelphia said that its manufacturing index deteriorated to minus 6.3 this month from January’s reading of 9.4. Analysts had expected the index to inch down to 8.0 in February.

Earlier Thursday, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell by 3,000 to 336,000, slightly below expectations for a decline of 4,000.

In a separate report, the Labor Department said U.S. consumer prices rose 1.6% on a year-over-year basis in January, in line with forecasts. Consumer prices were 0.1% higher from a month earlier, also matching forecasts.

Core consumer prices, which strip out food and energy costs, were also up 1.6% on a year-over-year basis and 0.1% from the previous month.

The data came after Wednesday’s minutes of the Federal Reserve’s January meeting indicated that that the current pace of its decrease in bond purchases would remain unchanged, so long as the economy shows signs of improvement.

Sterling was steady against the euro, with EUR/GBP easing 0.02% to 0.8232.

Also Thursday, the Markit euro zone composite output purchasing managers’ index ticked down to a two month low of 52.7 this month, but remained close to January’s 31-month high of 52.9.

A modest pickup in euro zone service sector activity was offset by an easing the rate of manufacturing output. However, manufacturing activity continued to outperform services activity, due in large part to strong export demand from outside the euro area.

Germany’s composite output index rose to a 32-month high this month, but France’s composite index fell to a two-month low, as service sector activity declined at the fastest rate in nine months.