Investing.com - The pound held steady near nine-month highs against the dollar on Wednesday after data showed that activity in the U.K. construction sector slowed slightly in September, but remained close to August’s almost six-year high.
GBP/USD hit 1.6201 during European morning trade, the session high; the pair subsequently consolidated at 1.6197, edging up 0.01%.
Cable was likely to find support at 1.6127, Monday’s low and near-term resistance at 1.6259, Tuesday’s high and the highest since early January.
The Markit U.K. construction purchasing managers' index ticked down to 58.9 in September from 59.1 in August. Economists had forecast a reading of 59.2.
The report said the latest expansion of construction employment was the sharpest since December 2007.
“Construction is no longer the weakest link in the UK economy. The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity,” senior economist at Markit Tim Moore said.
The dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.02% to 0.8353.
In the euro zone, Italian Prime Minister Enrico Letta was facing a vote of confidence in parliament, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Investors were also looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi later Wednesday.
GBP/USD hit 1.6201 during European morning trade, the session high; the pair subsequently consolidated at 1.6197, edging up 0.01%.
Cable was likely to find support at 1.6127, Monday’s low and near-term resistance at 1.6259, Tuesday’s high and the highest since early January.
The Markit U.K. construction purchasing managers' index ticked down to 58.9 in September from 59.1 in August. Economists had forecast a reading of 59.2.
The report said the latest expansion of construction employment was the sharpest since December 2007.
“Construction is no longer the weakest link in the UK economy. The third quarter of 2013 ended with output growth riding high amid greater spending on infrastructure projects and resurgent house building activity,” senior economist at Markit Tim Moore said.
The dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.02% to 0.8353.
In the euro zone, Italian Prime Minister Enrico Letta was facing a vote of confidence in parliament, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
Investors were also looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi later Wednesday.