Investing.com – The pound advanced to a daily high against the U.S. dollar on Wednesday, as a string of weaker-than-expected economic data weighed on the greenback and investors awaited U.K. manufacturing data.
GBP/USD hit 1.6495 during European morning trade, the daily high; the pair subsequently consolidated at 1.6484, gaining 0.21%.
Cable was likely to find support at 1.6377, the low of May 27 and resistance at 1.6546, Tuesday’s high and a four-week high.
Data on Tuesday showed that U.S. house prices fell more-than-expected in March, declining for the ninth consecutive month. Separate reports showed that manufacturing activity in the Midwest area fell significantly more-than-expected last month, while U.S. consumer confidence fell steeply in May.
The data reinforced expectations that the Federal Reserve is unlikely to tighten monetary policy for some time to come.
Meanwhile, the uneven nature of the U.K. economic recovery has seen markets scale back the chances for a rate hike by the Bank of England in the near term.
The pound was slightly higher against the euro, with EUR/GBP dipping 0.04% to hit 0.8747.
Later Wednesday, the U.K. was to publish data on manufacturing activity, while the Bank of England was to publish data on net lending to individuals as well as reports on mortgage approvals and M4 money supply.
Elsewhere, U.S. payroll processing firm ADP was to publish its report on non-farm payrolls and the U.S. Institute of Supply Management was to publish data on manufacturing activity.
GBP/USD hit 1.6495 during European morning trade, the daily high; the pair subsequently consolidated at 1.6484, gaining 0.21%.
Cable was likely to find support at 1.6377, the low of May 27 and resistance at 1.6546, Tuesday’s high and a four-week high.
Data on Tuesday showed that U.S. house prices fell more-than-expected in March, declining for the ninth consecutive month. Separate reports showed that manufacturing activity in the Midwest area fell significantly more-than-expected last month, while U.S. consumer confidence fell steeply in May.
The data reinforced expectations that the Federal Reserve is unlikely to tighten monetary policy for some time to come.
Meanwhile, the uneven nature of the U.K. economic recovery has seen markets scale back the chances for a rate hike by the Bank of England in the near term.
The pound was slightly higher against the euro, with EUR/GBP dipping 0.04% to hit 0.8747.
Later Wednesday, the U.K. was to publish data on manufacturing activity, while the Bank of England was to publish data on net lending to individuals as well as reports on mortgage approvals and M4 money supply.
Elsewhere, U.S. payroll processing firm ADP was to publish its report on non-farm payrolls and the U.S. Institute of Supply Management was to publish data on manufacturing activity.