Investing.com - The pound was trading close to a one-week high against the U.S. dollar on Wednesday, tracking gains in the euro, but market sentiment remained shaky as investors eyed the outcome of key talks aimed at averting a Greek default.
GBP/USD hit 1.5436 during U.S. morning trade, the pair’s highest since January 11; the pair subsequently consolidated at 1.5417, gaining 0.53%.
Cable was likely to find support at 1.5309, Tuesday’s low and resistance at 1.5490, the high of January 11.
Market sentiment was lifted following reports that the International Monetary Fund is looking at ways to enlarge its lending capacity to USD1 trillion, from the existing USD385 billion, to insulate the global economy from the effects of the financial crisis in the euro zone.
Meanwhile, Greek Prime Minister Lucas Papademos was resuming talks with bond holders to discuss a voluntary write-down on Greece’s sovereign debt.
Greece needs to secure an agreement on restructuring its debt in order to access new bailout funds and avert a default when an EUR14.4 billion bond redemption comes due on March 20.
In the U.K., official data showed that the unemployment rate unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
The report also showed that the claimant count rose by a seasonally adjusted 1,200 in December, significantly below expectations for an increase of 8,000, indicating that the downturn in the labor market may be moderating.
The pound was lower against the euro, with EUR/GBP rising 0.25% to hit 0.8326.
Also Wednesday, U.S. data showed that producer price inflation declined by a seasonally adjusted 0.1% in December, confounding expectations for a 0.1% gain.
Core PPI, which excludes the volatile food and energy categories, rose 0.3% last month, taking the annualized rate to 3.0%, the fastest increase since mid-2009.
A separate report showed that industrial production in the U.S. rose less-than-expected in December, while the previous month’s figure was downwardly revised to show a bigger decline.
GBP/USD hit 1.5436 during U.S. morning trade, the pair’s highest since January 11; the pair subsequently consolidated at 1.5417, gaining 0.53%.
Cable was likely to find support at 1.5309, Tuesday’s low and resistance at 1.5490, the high of January 11.
Market sentiment was lifted following reports that the International Monetary Fund is looking at ways to enlarge its lending capacity to USD1 trillion, from the existing USD385 billion, to insulate the global economy from the effects of the financial crisis in the euro zone.
Meanwhile, Greek Prime Minister Lucas Papademos was resuming talks with bond holders to discuss a voluntary write-down on Greece’s sovereign debt.
Greece needs to secure an agreement on restructuring its debt in order to access new bailout funds and avert a default when an EUR14.4 billion bond redemption comes due on March 20.
In the U.K., official data showed that the unemployment rate unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
The report also showed that the claimant count rose by a seasonally adjusted 1,200 in December, significantly below expectations for an increase of 8,000, indicating that the downturn in the labor market may be moderating.
The pound was lower against the euro, with EUR/GBP rising 0.25% to hit 0.8326.
Also Wednesday, U.S. data showed that producer price inflation declined by a seasonally adjusted 0.1% in December, confounding expectations for a 0.1% gain.
Core PPI, which excludes the volatile food and energy categories, rose 0.3% last month, taking the annualized rate to 3.0%, the fastest increase since mid-2009.
A separate report showed that industrial production in the U.S. rose less-than-expected in December, while the previous month’s figure was downwardly revised to show a bigger decline.