Forex - GBP/USD erases gains after drop in U.S. jobless claims

Forex Pros – The pound erased gains against the U.S. dollar on Thursday, falling from a five-day high after government data showed that new U.S. claims for unemployment benefits fell last week.

GBP/USD retreated from 1.6151, the pair’s highest since last Friday, to hit 1.6032 during European afternoon trade, shedding 0.25%.

Cable was likely to find support at 1.5942, Tuesday’s low and resistance at 1.6266, the high of March 24.

The Labor Department said initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 388,000. Analysts had expected claims to drop to 380,000.

The prior week's figure was revised up to 394,000 from the previously reported 382,000.

Earlier Thursday, the pound moved higher after Nationwide Building Society said U.K. house prices rose unexpectedly for a second consecutive month in March.

The pound was also down against the euro, with EUR/GBP rising 0.53% to hit 0.8836.

Also Thursday, the Bank of England’s quarterly credit conditions survey showed that credit conditions look set to ease slightly in the next three months, with banks keener to offer mortgages, even to borrowers with small deposits.