Investing.com - The pound held gains against the U.S. dollar on Wednesday, as upbeat U.K. manufacturing data continued to support demand for sterling.
GBP/USD hit 1.6118 during U.S. morning trade, the pair's highest since October 29; the pair subsequently consolidated at 1.6097, gaining 0.34%.
Cable was likely to find support at 1.5947, Tuesday’s low and resistance at 1.6207, the high of October 28.
The pound found support 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.
Meanwhile, 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 was lower against the euro with EUR/GBP edging 0.15% higher, to hit 0.8412.
The euro strengthened broadly following reports that European Central Bank sources said the bank was unlikely to cut rates at its monthly meeting on Thursday despite data last week showing that euro zone annual inflation fell to a four year low in October.
The euro had moved higher earlier in the session after robust German factory data offset concerns over possible monetary easing by the ECB in order to safeguard the economic recovery in the region.
German factory orders rose 3.3% in September, easily outstripping expectations for a gain of 0.5% and were 7.9% higher on a year-over-year basis.
Meanwhile, revised data showed that the final reading of the euro zone’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.
A separate report showed that euro zone retail sales fell 0.6% in September, compared to expectations for a 0.4% decline.
In the euro zone, data 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.
GBP/USD hit 1.6118 during U.S. morning trade, the pair's highest since October 29; the pair subsequently consolidated at 1.6097, gaining 0.34%.
Cable was likely to find support at 1.5947, Tuesday’s low and resistance at 1.6207, the high of October 28.
The pound found support 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.
Meanwhile, 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 was lower against the euro with EUR/GBP edging 0.15% higher, to hit 0.8412.
The euro strengthened broadly following reports that European Central Bank sources said the bank was unlikely to cut rates at its monthly meeting on Thursday despite data last week showing that euro zone annual inflation fell to a four year low in October.
The euro had moved higher earlier in the session after robust German factory data offset concerns over possible monetary easing by the ECB in order to safeguard the economic recovery in the region.
German factory orders rose 3.3% in September, easily outstripping expectations for a gain of 0.5% and were 7.9% higher on a year-over-year basis.
Meanwhile, revised data showed that the final reading of the euro zone’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.
A separate report showed that euro zone retail sales fell 0.6% in September, compared to expectations for a 0.4% decline.
In the euro zone, data 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.