Investing.com - The pound remained higher against the U.S. dollar on Wednesday, but gains were limited after the release of tepid U.S. manufacturing activity data added to concerns over the strength of the country's economic recovery.
GBP/USD hit 1.6136 during U.S. morning trade, the pair's highest since October 26; the pair subsequently consolidated at 1.6102, adding 0.18%.
Cable was likely to find support at 1.6022, Tuesday's low and resistance at 1.6171, the high of October 18.
Data showed that manufacturing activity in the Chicago area contracted for the second consecutive month in October.
Market research group Kingsbury International said its Chicago purchasing managers’ index rose to 49.9 in October from a reading of 49.7 the previous month. Analysts had expected the index to improve to 50.0 in October.
Sentiment stregnthened earlier after Spanish Prime Minister Mariano Rajoy said earlier that his country needs the help of the European Union to meet its budget goals, and added that EU progress on a banking union would allow leeway on making a formal request for aid.
Speaking in the Spanish Parliament, Mr. Rajoy also said that an agreement on direct bank recapitalization is getting closer and that such an agreement would improve market confidence.
Separately, euro zone finance ministers urged Greek authorities "to solve remaining issues” and said they would hold further discussions on November 12 after they have received the troika’s report on Greece.
Elsewhere, the pound was fractionally higher against the euro with EUR/GBP slipping 0.07%, to hit 0.8056.
Also Wednesday, official data showed that the unemployment rate in the euro zone climbed to a record 11.6% in September, from an upwardly revised 11.5% in August, adding to concerns over the deepening impact of the region’s debt crisis.
GBP/USD hit 1.6136 during U.S. morning trade, the pair's highest since October 26; the pair subsequently consolidated at 1.6102, adding 0.18%.
Cable was likely to find support at 1.6022, Tuesday's low and resistance at 1.6171, the high of October 18.
Data showed that manufacturing activity in the Chicago area contracted for the second consecutive month in October.
Market research group Kingsbury International said its Chicago purchasing managers’ index rose to 49.9 in October from a reading of 49.7 the previous month. Analysts had expected the index to improve to 50.0 in October.
Sentiment stregnthened earlier after Spanish Prime Minister Mariano Rajoy said earlier that his country needs the help of the European Union to meet its budget goals, and added that EU progress on a banking union would allow leeway on making a formal request for aid.
Speaking in the Spanish Parliament, Mr. Rajoy also said that an agreement on direct bank recapitalization is getting closer and that such an agreement would improve market confidence.
Separately, euro zone finance ministers urged Greek authorities "to solve remaining issues” and said they would hold further discussions on November 12 after they have received the troika’s report on Greece.
Elsewhere, the pound was fractionally higher against the euro with EUR/GBP slipping 0.07%, to hit 0.8056.
Also Wednesday, official data showed that the unemployment rate in the euro zone climbed to a record 11.6% in September, from an upwardly revised 11.5% in August, adding to concerns over the deepening impact of the region’s debt crisis.