Investing.com - The pound extended gains against the U.S. dollar on Wednesday, as encouraging data out of China offset weak euro zone data, while expectations for more easing by the Bank of England waned following remarks by the central bank’s governor.
GBP/USD hit 1.6023 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6021, gaining 0.45%.
Cable was likely to find support at 1.5912, Tuesday’s low and a six-week low and near-term resistance at 1.6065, the high of October 19.
Earlier Wednesday, data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September, fuelling fears over the deepening economic impact of the region’s long-running debt crisis.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to worries over outlook for the bloc’s largest economy.
Separately, a report by German research institute Ifo showed that its closely watched business climate index deteriorated to its lowest level since March 2010 this month.
The poor euro zone data was offset by data showing that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.
Meanwhile, demand for the pound was underpinned after comments by BoE Governor Mervyn King dampened expectations for more easing by the central bank.
In a speech late Tuesday, Governor King said policymakers would have to think "long and hard" before implementing further quantitative easing measures.
Investors were anticipating preliminary data on U.K. economic growth on Thursday, amid expectations that the report will show that the economy expanded in the third quarter, following three successive quarters of contraction.
The pound rose to a more than one week high against the euro, with EUR/GBP down 0.68% to 0.8085.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.
GBP/USD hit 1.6023 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6021, gaining 0.45%.
Cable was likely to find support at 1.5912, Tuesday’s low and a six-week low and near-term resistance at 1.6065, the high of October 19.
Earlier Wednesday, data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September, fuelling fears over the deepening economic impact of the region’s long-running debt crisis.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to worries over outlook for the bloc’s largest economy.
Separately, a report by German research institute Ifo showed that its closely watched business climate index deteriorated to its lowest level since March 2010 this month.
The poor euro zone data was offset by data showing that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.
Meanwhile, demand for the pound was underpinned after comments by BoE Governor Mervyn King dampened expectations for more easing by the central bank.
In a speech late Tuesday, Governor King said policymakers would have to think "long and hard" before implementing further quantitative easing measures.
Investors were anticipating preliminary data on U.K. economic growth on Thursday, amid expectations that the report will show that the economy expanded in the third quarter, following three successive quarters of contraction.
The pound rose to a more than one week high against the euro, with EUR/GBP down 0.68% to 0.8085.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.