Investing.com – The pound extended gains against the U.S. dollar on Wednesday, rising to a fresh daily high after U.S. data showed that new home sales rose faster than expected in December, hitting their highest level in eight months.
GBP/USD hit 1.5901 during European late afternoon trade, the daily high; the pair subsequently consolidated at 1.5885, gaining 0.43%.
Cable was likely to find support at 1.575, Tuesday’s low and resistance at 1.6016, Tuesday’s high.
The Commerce Department said sales jumped 17.5% to a seasonally adjusted 329,000 unit annual rate after a downwardly revised 280,000-unit pace in November.
Economists had expected new home sales to rise to 300,000 in December.
Elsewhere Wednesday, the pound was boosted after the minutes of the Bank of England’s January meeting showed that the decision to leave rates unchanged was "finely balanced" for some members and that February's inflation report would help them assess the outlook for prices.
The pound had fallen sharply on Tuesday after government data showed that Britain's economy shrank 0.5% in the last three months of 2010, confounding forecasts for a 0.5% expansion.
The pound was also higher against the euro, with EUR/GBP shedding 0.37% to hit 0.8618.
Later Wednesday, the Federal Reserve was to convene its first monetary policy meeting of the year. The U.S. central bank was widely expected hold short-term interest rates near zero and say it remained committed to its USD600 billion bond purchase program.
GBP/USD hit 1.5901 during European late afternoon trade, the daily high; the pair subsequently consolidated at 1.5885, gaining 0.43%.
Cable was likely to find support at 1.575, Tuesday’s low and resistance at 1.6016, Tuesday’s high.
The Commerce Department said sales jumped 17.5% to a seasonally adjusted 329,000 unit annual rate after a downwardly revised 280,000-unit pace in November.
Economists had expected new home sales to rise to 300,000 in December.
Elsewhere Wednesday, the pound was boosted after the minutes of the Bank of England’s January meeting showed that the decision to leave rates unchanged was "finely balanced" for some members and that February's inflation report would help them assess the outlook for prices.
The pound had fallen sharply on Tuesday after government data showed that Britain's economy shrank 0.5% in the last three months of 2010, confounding forecasts for a 0.5% expansion.
The pound was also higher against the euro, with EUR/GBP shedding 0.37% to hit 0.8618.
Later Wednesday, the Federal Reserve was to convene its first monetary policy meeting of the year. The U.S. central bank was widely expected hold short-term interest rates near zero and say it remained committed to its USD600 billion bond purchase program.