Investing.com - The pound rose to a four-day high against the U.S. dollar on Wednesday, but gains were limited amid growing uncertainty over a German court ruling on the European Union’s permanent bailout fund.
GBP/USD hit 1.5556 during European morning trade, the pair’s highest since July 5; the pair subsequently consolidated at 1.5549, rising 0.19%.
Cable was likely to find support at 1.5477, Tuesday’s low and resistance at 1.5622, the high of June 28.
Sentiment remained vulnerable after Germany’s Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
German Finance Minister Wolfgang Schaueble said however that he was confident the court would rule that the ESM and fiscal compact were compatible with the constitution.
Meanwhile, markets were eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
The pound found support on Tuesday after the U.K. Office for National Statistics said that manufacturing production rose by 1.2% in May, blowing past expectations for a more modest 0.1% gain, after falling by 0.8% in April.
A separate report showed that the U.K.’s goods trade deficit narrowed to a seasonally adjusted GBP8.4 billion in May from a deficit of GBP9.7 billion in April, as exports jumped 6.6%.
Elsewhere, the pound was hovering lose to a three-and-a-half year high against the euro with EUR/GBP inching down 0.02%, to hit 0.7892.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.
GBP/USD hit 1.5556 during European morning trade, the pair’s highest since July 5; the pair subsequently consolidated at 1.5549, rising 0.19%.
Cable was likely to find support at 1.5477, Tuesday’s low and resistance at 1.5622, the high of June 28.
Sentiment remained vulnerable after Germany’s Constitutional Court delayed on Tuesday its decision on whether the euro zone's bailout fund, the European Stability Mechanism, and planned changes to the region's budget rules are compatible with German law.
Without German backing, the ESM, which was originally meant to start on July 1, then delayed to July 9, cannot come into effect.
German Finance Minister Wolfgang Schaueble said however that he was confident the court would rule that the ESM and fiscal compact were compatible with the constitution.
Meanwhile, markets were eyeing the minutes of the Federal Reserve’s most recent policy meeting to be published later in the day, amid speculation that the central bank may implement further monetary easing measures to shore up growth.
The pound found support on Tuesday after the U.K. Office for National Statistics said that manufacturing production rose by 1.2% in May, blowing past expectations for a more modest 0.1% gain, after falling by 0.8% in April.
A separate report showed that the U.K.’s goods trade deficit narrowed to a seasonally adjusted GBP8.4 billion in May from a deficit of GBP9.7 billion in April, as exports jumped 6.6%.
Elsewhere, the pound was hovering lose to a three-and-a-half year high against the euro with EUR/GBP inching down 0.02%, to hit 0.7892.
Later in the day, the U.S. was to release official data on trade balance and crude oil stockpiles, followed by the minutes of the Fed’s June policy-setting meeting.