Investing.com – The pound trimmed gains against the U.S. dollar on Wednesday, retreating from a 10-day high, as proposed U.S. tax cuts increased expectations for U.S. economic growth.
GBP/USD retreated from 1.5823, the pair’s highest since November 24, to hit 1.5771 during European afternoon trade, gaining 0.09%.
Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5964, the high of November 23.
The proposal by U.S. President Barack Obama to extend tax cuts for two years could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth.
Also Wednesday, the Confederation of British Industry said its index of industrial order expectations rose to -3.0 in December, after rising to -15.0 in November. Analysts had expected the index to rise to -12.0 in December.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
CBI Chief Economic Adviser Ian McCafferty said, “These figures show that the recovery in the manufacturing sector is well underway.”
The pound was also up against the euro, with EUR/GBP shedding 0.33% to hit 0.8387.
Elsewhere, the British Retail Consortium late Tuesday said U.K. shop price inflation remained extremely subdued in November, rising by just 0.1% on the month and rising 2.0% on the year.
The data bolstered the case made by senior Bank of England policymakers that inflation is being driven by one-off effects, such as VAT, energy prices and pound weakness.
GBP/USD retreated from 1.5823, the pair’s highest since November 24, to hit 1.5771 during European afternoon trade, gaining 0.09%.
Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5964, the high of November 23.
The proposal by U.S. President Barack Obama to extend tax cuts for two years could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth.
Also Wednesday, the Confederation of British Industry said its index of industrial order expectations rose to -3.0 in December, after rising to -15.0 in November. Analysts had expected the index to rise to -12.0 in December.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
CBI Chief Economic Adviser Ian McCafferty said, “These figures show that the recovery in the manufacturing sector is well underway.”
The pound was also up against the euro, with EUR/GBP shedding 0.33% to hit 0.8387.
Elsewhere, the British Retail Consortium late Tuesday said U.K. shop price inflation remained extremely subdued in November, rising by just 0.1% on the month and rising 2.0% on the year.
The data bolstered the case made by senior Bank of England policymakers that inflation is being driven by one-off effects, such as VAT, energy prices and pound weakness.