Investing.com - The pound was higher against the U.S. dollar on Wednesday, as investors trimmed back expectations for another round of easing by the Bank of England and U.S. markets prepared to reopen following a two-day closure for Hurricane Sandy.
GBP/USD hit 1.6136 during European afternoon trade, the pair’s highest since October 26; the pair subsequently consolidated at 1.6112, gaining 0.25%.
Cable was likely to find support at 1.6067, the session low and resistance at 1.6177, the high of October 17.
Sentiment on sterling remained underpinned after stronger-than-expected retail sales data from the Confederation of British Industry on Tuesday dampened expectations for more easing by the BoE and fuelled hopes for a sustained economic recovery.
The report came after official data last week showed that the U.K. economy exited a recession in the third quarter, expanding by a larget-than-expected 1%.
Investor confidence was also boosted after Spanish Prime Minister Mariano Rajoy said earlier that his country needs the help of the European Union to meet its budget goals, and added that EU progress on a banking union would allow leeway on making a formal request for aid.
Market participants were looking ahead to Chinese manufacturing data on Thursday, as well as Friday’s U.S. nonfarm payrolls report for direction, amid lingering concerns over the outlook for global growth.
Sterling was fractionally lower against the euro, with EUR/GBP inching up 0.08% to 0.8068.
Later Wednesday, the U.S. was to produce official data on manufacturing activity in Chicago, as well as a government report on crude oil inventories.
Meanwhile, euro zone finance ministers were to hold a conference call to discuss Greece’s progress on meeting austerity targets, but no decision on when the country will receive the next tranche of its bailout was expected.
GBP/USD hit 1.6136 during European afternoon trade, the pair’s highest since October 26; the pair subsequently consolidated at 1.6112, gaining 0.25%.
Cable was likely to find support at 1.6067, the session low and resistance at 1.6177, the high of October 17.
Sentiment on sterling remained underpinned after stronger-than-expected retail sales data from the Confederation of British Industry on Tuesday dampened expectations for more easing by the BoE and fuelled hopes for a sustained economic recovery.
The report came after official data last week showed that the U.K. economy exited a recession in the third quarter, expanding by a larget-than-expected 1%.
Investor confidence was also boosted after Spanish Prime Minister Mariano Rajoy said earlier that his country needs the help of the European Union to meet its budget goals, and added that EU progress on a banking union would allow leeway on making a formal request for aid.
Market participants were looking ahead to Chinese manufacturing data on Thursday, as well as Friday’s U.S. nonfarm payrolls report for direction, amid lingering concerns over the outlook for global growth.
Sterling was fractionally lower against the euro, with EUR/GBP inching up 0.08% to 0.8068.
Later Wednesday, the U.S. was to produce official data on manufacturing activity in Chicago, as well as a government report on crude oil inventories.
Meanwhile, euro zone finance ministers were to hold a conference call to discuss Greece’s progress on meeting austerity targets, but no decision on when the country will receive the next tranche of its bailout was expected.