Investing.com – The pound reversed losses against the U.S. dollar on Wednesday, advancing to a fresh daily high as markets eyed testimony by Federal Reserve chief Ben Bernanke before the Budget Committee in Washington.
GBP/USD clawed back up from 1.6034, the daily low, to hit 1.6115 during European late afternoon trade, climbing 0.28%.
Cable was likely to find support at 1.6027, Tuesday’s low and a one-week low and short-term resistance at 1.6161, Tuesday’s high.
Earlier Wednesday, the pound slipped after official data showed that the U.K.'s goods trade deficit widened again in December from November's record gap.
The Office for National Statistics said that Britain's goods trade gap widened to GBP9.2 billion from GBP8.4 billion in November. Economists had forecast a broadly steady reading of GBP8.6 billion pounds.
Excluding volatile trade in oil and goods such as aircraft, Britain's goods trade deficit rose to GBP8.1 billion from GBP7.3 billion, its highest since monthly records began in 1980.
The total trade deficit, which includes services, deteriorated to its worst level since August 2005, increasing to GBP4.8 billion from GBP3.9 billion.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.29% to hit 0.8504.
Also Wednesday, the Confederation of British Industry, the U.K.’s biggest business lobby, raised its inflation forecast for 2011 and said it was now more likely that the Bank of England would increase interest rates in the second quarter.
GBP/USD clawed back up from 1.6034, the daily low, to hit 1.6115 during European late afternoon trade, climbing 0.28%.
Cable was likely to find support at 1.6027, Tuesday’s low and a one-week low and short-term resistance at 1.6161, Tuesday’s high.
Earlier Wednesday, the pound slipped after official data showed that the U.K.'s goods trade deficit widened again in December from November's record gap.
The Office for National Statistics said that Britain's goods trade gap widened to GBP9.2 billion from GBP8.4 billion in November. Economists had forecast a broadly steady reading of GBP8.6 billion pounds.
Excluding volatile trade in oil and goods such as aircraft, Britain's goods trade deficit rose to GBP8.1 billion from GBP7.3 billion, its highest since monthly records began in 1980.
The total trade deficit, which includes services, deteriorated to its worst level since August 2005, increasing to GBP4.8 billion from GBP3.9 billion.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.29% to hit 0.8504.
Also Wednesday, the Confederation of British Industry, the U.K.’s biggest business lobby, raised its inflation forecast for 2011 and said it was now more likely that the Bank of England would increase interest rates in the second quarter.