Investing.com - The pound was trading close to a four-month high against the U.S. dollar on Wednesday, ahead of the European Central Bank’s policy meeting on Thursday, amid growing hopes for fresh action to stem the euro zone’ debt crisis.
GBP/USD hit 1.5934 during U.S. morning trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.5908, rising 0.23%.
Cable was likely to find support at 1.5801, the low of August 29 and resistance at 1.5998, the high of June 15.
Investor confidence strengthened amid reports the ECB is planning to buy unlimited amounts of short-term debt to ease the euro zone’s financial woes.
The ECB declined to comment.
Markets were eyeing the ECB’s monetary policy meeting on Thursday, amid expectations that the central bank is set to announce more details of measures to help stabilize the region’s sovereign debt markets after its policy meeting on Thursday.
Meanwhile, the pound remained supported after stronger-than-forecast service sector data for August fuelled hopes that the Bank of England would refrain from implementing further stimulus measures at its policy meeting on Thursday.
Markit said its services purchasing managers’ index rose to 53.7, the highest level since March, from a reading of 51.0 in July.
The data was inadvertently published by Reuters on Tuesday, a day ahead of schedule.
Elsewhere, the pound was steady against the euro with EUR/GBP inching up 0.01%, to hit 0.7918.
Also Wednesday, a report showing that service sector activity in the euro zone contracted at a slightly faster rate than initially estimated in August added to fears that the bloc is set to enter a technical recession in the third quarter.
Markit said that its revised services purchasing managers’ index ticked down to 47.2 in August from a preliminary reading of 47.5, defying expectations to remain unchanged.
Germany's services sector contracted at its fastest rate in three years, with the PMI coming in at 48.3.
GBP/USD hit 1.5934 during U.S. morning trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.5908, rising 0.23%.
Cable was likely to find support at 1.5801, the low of August 29 and resistance at 1.5998, the high of June 15.
Investor confidence strengthened amid reports the ECB is planning to buy unlimited amounts of short-term debt to ease the euro zone’s financial woes.
The ECB declined to comment.
Markets were eyeing the ECB’s monetary policy meeting on Thursday, amid expectations that the central bank is set to announce more details of measures to help stabilize the region’s sovereign debt markets after its policy meeting on Thursday.
Meanwhile, the pound remained supported after stronger-than-forecast service sector data for August fuelled hopes that the Bank of England would refrain from implementing further stimulus measures at its policy meeting on Thursday.
Markit said its services purchasing managers’ index rose to 53.7, the highest level since March, from a reading of 51.0 in July.
The data was inadvertently published by Reuters on Tuesday, a day ahead of schedule.
Elsewhere, the pound was steady against the euro with EUR/GBP inching up 0.01%, to hit 0.7918.
Also Wednesday, a report showing that service sector activity in the euro zone contracted at a slightly faster rate than initially estimated in August added to fears that the bloc is set to enter a technical recession in the third quarter.
Markit said that its revised services purchasing managers’ index ticked down to 47.2 in August from a preliminary reading of 47.5, defying expectations to remain unchanged.
Germany's services sector contracted at its fastest rate in three years, with the PMI coming in at 48.3.