The pound gained more than 1 percent against the dollar on Thursday, as the dollar deepened its broad post-U.S. data retreat. The U.S. dollar also fell steeply against the euro, the Swiss franc and the Australian dollar, digesting U.S. gross domestic product and weekly jobless claims reports that were mildly weaker than expectations. Some analysts also cited rupture of key technical levels as contributing to the dollar's fall. During the morning session in New York, sterling rose to session highs around $1.8362, up at least 1 percent. "I think today's numbers along with yesterday's (U.S.) durable goods numbers seem to suggest that the U.S. economy is beginning to cool on the margin and therefore a less aggressive Fed tightening is on the cards," said Paresh Upadhyaya, portfolio manager with Putnam Investments in Boston.
Expectations of Fed rate hikes have supported the dollar because these have increased the attraction of U.S. assets to foreign investors.///