Investing.com –

Investing.com – The pound traded near session lows against the dollar on Thursday after data revealed the U.S. service sector was far busier in August than markets were expecting.

In U.S. trading on Thursday, GBP/USD was down 0.68% at 1.6348 up from a session low of 1.6345 and off a high of 1.6466.

Cable was likely to find support at 1.6250, the low from Feb, 5, and resistance at 1.6644, Monday’s high.

The U.S. services sector grew at its strongest pace in August since 2005.

The Institute for Supply Management reported earlier that its services index rose to 59.6 in August from 58.7 in July, far surpassing market forecasts for a downtick to 57.5.

A reading above 50 indicates expansion in the sector, and the index offset lackluster U.S. employment data.

The Labor Department reported that the number of individuals filing for first-time unemployment assistance in the U.S. last week rose by 4,000 to 302,000 from the previous week’s total of 298,000.

Analysts had expected jobless claims to rise by 2,000 to 300,000 last week.

Elsewhere, payroll processor ADP reported that its nonfarm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000.

At the same time data showed that the U.S. trade deficit narrowed to the lowest in six months in July.

Meanwhile in the U.K., the Bank of England voted to keep interest rates on hold at 0.5% and to keep the size of its asset purchase program unchanged at 375 billion.

The minutes of the meeting, due to be published in two weeks, would indicate how many monetary policy committee members voted in favor of a rate hike. The MPC was split last month, with two members voting in favor of a rate increase and two against.

The pound remained under pressure from concerns that support for Scottish independence is gaining momentum ahead of a referendum due to take place on Sept. 18.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.93% at 0.7914, and down against the yen, with GBP/JPY down 0.22% at 172.22.

The euro came under heavy selling pressure after the European Central Bank trimmed its benchmark interest rate to a record-low 0.05% from 0.15%, surprising many market analysts who had expected no change.

The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.

The euro extended losses after ECB President Mario Draghi said the bank will begin an asset-backed securities purchasing program to shore up the recovery and steer the continent away from deflationary decline.

Draghi did not say how much debt the ECB planned to purchase, as further details will emerge in October.

The ECB cut its forecast for growth this year to 0.9% down from 1.0% previously and cut the forecast for 2015 to 1.6% from 1.7%. The bank also lowered its inflation forecast for this year to 0.6% from 0.7% in June.

On Friday, markets will track the U.S. August jobs report.

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