Pound Sterling to US Dollar (GBP/USD) Exchange Rate little changed on Positive US Data and Ukraine Crisis

The Pound Sterling (GBP) to US Dollar (USD) exchange rate was little changed on Thursday despite the publication of positive economic data out of the world’s largest economy.

According to the Washington based Labour Department the number of Americans filing for new jobless benefits fell again for a second consecutive week and remained close to post recession lows, increasing speculation that the USA’s labour market was strengthening.

Initial claims for jobless benefits fell by 1,000 to a seasonally adjusted figure of 298,000 last week.

The figure was below the 300,000 forecast by economists.

The data also showed that the number of Americans continuing to make claims increased by 25,000 to 2.53 million in the week ending on August 16.

Claims are continuing to hover around their lowest levels since 2007.

The strong data confirmed Federal Reserve Chair Janet Yellen’s comments at Jackson Hole last week saying that the U.S. economy is recovering and the labor market is improving.

A separate report released by the Bureau of Economic Analysis showed that its second estimate of real Gross Domestic Product (GDP) for the second quarter of 2014.

GDP expanded at a rate of 4.2% annual rate, beating economist expectations for a figure of 4%.

The data was said to reflect the reported upturns in exports and business spending.

The US Dollar also found support from increasing demand for safe haven assets as Ukraine’s President Petro Poroshenko accused Russia of launching an invasion of his country as Russian troops were reported crossing the border.

‘Recent Russian actions clearly demonstrate that Moscow is bluntly drawing Ukraine and the entire world into a full scale war,’ said Ukraine’s Foreign Ministry.

Pro Russian rebels successfully captured a number of towns and could advance towards strategically important coastal cities after they were supported by artillery barrages reported to have been carried out by the Russians.

With numerous reports of Russian tanks and troops crossing the border Moocows claims that it is not interfering in the conflict is growing increasingly laughable.

Safe haven currencies such as the Swiss Franc and Japanese Yen also rose against the Pound.

Concerns are rising as to what response if any the West will make to the claims.

Sterling resisted falls as it found support from economist comments that next month’s Scottish Independence Referendum vote will not have as big an impact upon the UK currency as previously stated.

Sterling also found support from a report published by the Confederation of British Industry (CBI) which showed that realized sales rose to a six-month high of 37 this month, from a reading of 21 in July, compared to expectations for a rise to 27.