Investing.com - The pound held moderate gains against the U.S. dollar on Wednesday, after the release of positive U.S. data, although gains were limited ahead of a highly anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday.
GBP/USD hit 1.5855 during U.S. morning trade, the pair’s highest since August 24; the pair subsequently consolidated at 1.5833, adding 0.09%.
Industry data showed that pending home sales in the U.S. rose 2.4% in July, beating expectations for a 1% increase and following a 1.4% drop the previous month.
The data came after the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Sentiment also found some support amid expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
But investors remained cautious ahead of a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Separately, the outlook for sterling remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.
The pound was higher against the euro with EUR/GBP shedding 0.38%, to hit 0.7913.
Also Wednesday, Italy saw borrowing costs decline to the lowest level since March after it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
GBP/USD hit 1.5855 during U.S. morning trade, the pair’s highest since August 24; the pair subsequently consolidated at 1.5833, adding 0.09%.
Industry data showed that pending home sales in the U.S. rose 2.4% in July, beating expectations for a 1% increase and following a 1.4% drop the previous month.
The data came after the U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Sentiment also found some support amid expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
But investors remained cautious ahead of a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Separately, the outlook for sterling remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.
The pound was higher against the euro with EUR/GBP shedding 0.38%, to hit 0.7913.
Also Wednesday, Italy saw borrowing costs decline to the lowest level since March after it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.