Investing.com - The pound rose to a three-and-a-half month high against the U.S. dollar on Wednesday, amid expectations that a second liquidity operation by the European Central Bank later in the day would fuel demand for higher-yielding assets.
GBP/USD hit 1.5938 during European morning trade, the pair’s highest since November 15; the pair subsequently consolidated at 1.5929, gaining 0.18%.
Cable was likely to find support at 1.5897, the session low and resistance at 1.6092, the high of November 14.
Market sentiment was supported ahead of the launch of the ECB’s second three-year long-term refinancing operation, which market participants expected to total nearly EUR500 billion.
In December, the EBC issued EUR489 billion in three-year loans to more than 500 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
In the U.K., a report earlier showed that consumer confidence remained unchanged in February, after rising to seven-month high last month.
The pound was higher against the euro, with EUR/GBP shedding 0.18% to hit 0.8448.
Later in the day, the U.K. Treasury Committee was to hold a hearing on the Bank of England’s inflation report. The U.K. was also to publish official data on net lending to individuals, while the U.S. was to release a preliminary report on fourth-quarter gross domestic product.
In addition, Federal Reserve Chairman Ben Bernanke was due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
GBP/USD hit 1.5938 during European morning trade, the pair’s highest since November 15; the pair subsequently consolidated at 1.5929, gaining 0.18%.
Cable was likely to find support at 1.5897, the session low and resistance at 1.6092, the high of November 14.
Market sentiment was supported ahead of the launch of the ECB’s second three-year long-term refinancing operation, which market participants expected to total nearly EUR500 billion.
In December, the EBC issued EUR489 billion in three-year loans to more than 500 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
In the U.K., a report earlier showed that consumer confidence remained unchanged in February, after rising to seven-month high last month.
The pound was higher against the euro, with EUR/GBP shedding 0.18% to hit 0.8448.
Later in the day, the U.K. Treasury Committee was to hold a hearing on the Bank of England’s inflation report. The U.K. was also to publish official data on net lending to individuals, while the U.S. was to release a preliminary report on fourth-quarter gross domestic product.
In addition, Federal Reserve Chairman Ben Bernanke was due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.