Investing.com - The pound held gains against the U.S. dollar on Thursday, as investors hoped for progress in highly watched U.S. budget negotiations aimed at avoiding a fiscal crisis.
GBP/USD hit 1.6202 during European afternoon trade, the pair's highest since December 24; the pair subsequently consolidated at 1.6168, adding 0.20%.
Cable was likely to find support at 1.6108, Wednesday's low and resistance at 1.6206, the high of December 24.
Market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
President Barack Obama was to end his vacation and return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline. Both chambers of Congress are also due to return to work on Thursday.
Without a deal, the U.S. could fall back into recession and drag much of the world down with it.
In addition, U.S. Treasury Secretary Tim Geithner said Wednesday that the USD16.4 trillion debt ceiling limit will be hit on December 31. Geithner added that "accounting measures" will be taken to create "headroom" in order to delay a technical violation.
The temporary moves would create USD200 billion in “headroom,” enough to last for approximately two months under normal circumstances.
Elsewhere, sterling was lower against the euro with EUR/GBP rising 0.8215.
Also Thursday, industry data showed that mortgage approvals in the U.K. rose less-than-expected in November, increasing by 33,600 after a 33,100 rise the previous month. Analysts had expected mortgage approvals to rise by 34,600 in November.
Later in the day, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on new home sales and consumer confidence.
GBP/USD hit 1.6202 during European afternoon trade, the pair's highest since December 24; the pair subsequently consolidated at 1.6168, adding 0.20%.
Cable was likely to find support at 1.6108, Wednesday's low and resistance at 1.6206, the high of December 24.
Market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
President Barack Obama was to end his vacation and return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline. Both chambers of Congress are also due to return to work on Thursday.
Without a deal, the U.S. could fall back into recession and drag much of the world down with it.
In addition, U.S. Treasury Secretary Tim Geithner said Wednesday that the USD16.4 trillion debt ceiling limit will be hit on December 31. Geithner added that "accounting measures" will be taken to create "headroom" in order to delay a technical violation.
The temporary moves would create USD200 billion in “headroom,” enough to last for approximately two months under normal circumstances.
Elsewhere, sterling was lower against the euro with EUR/GBP rising 0.8215.
Also Thursday, industry data showed that mortgage approvals in the U.K. rose less-than-expected in November, increasing by 33,600 after a 33,100 rise the previous month. Analysts had expected mortgage approvals to rise by 34,600 in November.
Later in the day, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on new home sales and consumer confidence.