Investing.com - The pound rose to session highs against the dollar on Wednesday after better-than-forecast data on U.K. manufacturing output added to signs that the economic recovery is gaining traction.
GBP/USD hit 1.6118 during European morning trade, the highest since October 29; the pair subsequently consolidated at 1.6105, gaining 0.39%.
Cable was likely to find support at 1.5947, Tuesday’s low and resistance at 1.6207, the high of October 28.
The pound advanced after the Office for National Statistics said manufacturing production rose 1.2% in September, above expectations for a 1.1% increase and was 0.8% higher on a year-over-year basis, beating forecasts for a 0.7% annual gain.
The ONS said industrial production rose 0.9% in September, compared to expectations for a 0.5% increase and was 2.2% higher than in the same month last year.
The data came one day after a report showed that Britain’s dominant services sector expanded at the fastest rate in 16 years in October, boosting the outlook for fourth quarter growth.
Demand for the dollar continued to be underpinned after data on Tuesday showing that service sector activity in the U.S. grew at a faster than expected pace in October supported the view that the Federal Reserve could start scaling back stimulus as soon as next month.
Sterling rose to five-week highs against the euro, with EUR/GBP slipping 0.13% to 0.8388.
In the euro zone, data on Wednesday showed that the final reading of the region’s services purchasing managers’ index ticked down to 51.6 in October from 52.2 in September, but was higher than a preliminary estimate of 50.9.
The soft data added to concerns over the outlook for the economic recovery ahead of the European Central Bank’s upcoming policy meeting on Thursday.
While no policy change was expected from the ECB this month many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December after weak euro zone inflation data last week.
GBP/USD hit 1.6118 during European morning trade, the highest since October 29; the pair subsequently consolidated at 1.6105, gaining 0.39%.
Cable was likely to find support at 1.5947, Tuesday’s low and resistance at 1.6207, the high of October 28.
The pound advanced after the Office for National Statistics said manufacturing production rose 1.2% in September, above expectations for a 1.1% increase and was 0.8% higher on a year-over-year basis, beating forecasts for a 0.7% annual gain.
The ONS said industrial production rose 0.9% in September, compared to expectations for a 0.5% increase and was 2.2% higher than in the same month last year.
The data came one day after a report showed that Britain’s dominant services sector expanded at the fastest rate in 16 years in October, boosting the outlook for fourth quarter growth.
Demand for the dollar continued to be underpinned after data on Tuesday showing that service sector activity in the U.S. grew at a faster than expected pace in October supported the view that the Federal Reserve could start scaling back stimulus as soon as next month.
Sterling rose to five-week highs against the euro, with EUR/GBP slipping 0.13% to 0.8388.
In the euro zone, data on Wednesday showed that the final reading of the region’s services purchasing managers’ index ticked down to 51.6 in October from 52.2 in September, but was higher than a preliminary estimate of 50.9.
The soft data added to concerns over the outlook for the economic recovery ahead of the European Central Bank’s upcoming policy meeting on Thursday.
While no policy change was expected from the ECB this month many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December after weak euro zone inflation data last week.