Investing.com - The pound hit a two-and-a-half month high against the U.S. dollar on Wednesday, on the back of stronger risk appetite after a report showed that the U.K. manufacturing sector rebounded strongly in January.
GBP/USD hit 1.5868 during European afternoon trade, the pair’s highest since November 18; the pair subsequently consolidated at 1.5859, gaining 0.66%.
Cable was likely to find support at 1.5705, the session low and resistance at 1.5887, the high of November 18.
The pound’s gains came after data showing that the manufacturing sector in the U.K. expanded at the fastest pace in eight months in January, as output grew at the fastest rate in 10 months and new orders rose.
The Markit manufacturing PMI rose to 52.1, the highest level since May, from an upwardly revised 49.7 in December, outstripping expectations for an increase to 50.1.
The data eased concerns over the outlook for the U.K. recovery after data last week showed that the country’s economy contracted in the fourth quarter, but did little to quell speculation that the Bank of England may implement fresh easing measures.
Market sentiment was also buoyed by better-than-expected German PMI data and fresh hopes that talks with Greece’s creditors are close to being concluded.
Elsewhere, the pound was lower against the euro, with EUR/GBP rising 0.22% to hit 0.8320.
Later in the day, the U.S. was to release a report on ADP non-farm payrolls, as well as data from the Institute for Supply Management on manufacturing sector activity.
GBP/USD hit 1.5868 during European afternoon trade, the pair’s highest since November 18; the pair subsequently consolidated at 1.5859, gaining 0.66%.
Cable was likely to find support at 1.5705, the session low and resistance at 1.5887, the high of November 18.
The pound’s gains came after data showing that the manufacturing sector in the U.K. expanded at the fastest pace in eight months in January, as output grew at the fastest rate in 10 months and new orders rose.
The Markit manufacturing PMI rose to 52.1, the highest level since May, from an upwardly revised 49.7 in December, outstripping expectations for an increase to 50.1.
The data eased concerns over the outlook for the U.K. recovery after data last week showed that the country’s economy contracted in the fourth quarter, but did little to quell speculation that the Bank of England may implement fresh easing measures.
Market sentiment was also buoyed by better-than-expected German PMI data and fresh hopes that talks with Greece’s creditors are close to being concluded.
Elsewhere, the pound was lower against the euro, with EUR/GBP rising 0.22% to hit 0.8320.
Later in the day, the U.S. was to release a report on ADP non-farm payrolls, as well as data from the Institute for Supply Management on manufacturing sector activity.