Investing.com - The pound trimmed gains against the U.S. dollar on Wednesday, pulling back from a daily high amid ongoing concerns over the outcome of a Greek referendum on its latest bailout deal.
GBP/USD pulled back from 1.6047, the daily high to hit 1.5990 during European afternoon trade, still up 0.25%.
The pair was likely to find support at 1.5843, the low of September 9 and resistance at 1.6092, the high of November 1.
Earlier in the day, Greece's Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package and was due to meet with French and German leaders to discuss the planned vote later in the day.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
Also Wednesday, a report showed that that construction sector activity in the U.K. grew more-than-expected in October, rising to a five-month high.
The Markit/CIPS construction purchasing managers’ index jumped to 53.9 in October from 50.1 the previous month, far outstripping expectations for an increase to 50.2.
The report came after data on Tuesday showed that the manufacturing sector contracted at its fastest pace in over two years in October.
The pound was down against the euro with EUR/GBP rising 0.29%, to trade at 0.8617.
Later in the day, the U.S. was to release private sector data on non-farm payrolls. Meanwhile, the Federal Reserve was to conclude its two-day policy-setting meeting; Fed Chairman Ben Bernanke was to conduct the bank’s post-policy meeting press conference.
GBP/USD pulled back from 1.6047, the daily high to hit 1.5990 during European afternoon trade, still up 0.25%.
The pair was likely to find support at 1.5843, the low of September 9 and resistance at 1.6092, the high of November 1.
Earlier in the day, Greece's Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package and was due to meet with French and German leaders to discuss the planned vote later in the day.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
Also Wednesday, a report showed that that construction sector activity in the U.K. grew more-than-expected in October, rising to a five-month high.
The Markit/CIPS construction purchasing managers’ index jumped to 53.9 in October from 50.1 the previous month, far outstripping expectations for an increase to 50.2.
The report came after data on Tuesday showed that the manufacturing sector contracted at its fastest pace in over two years in October.
The pound was down against the euro with EUR/GBP rising 0.29%, to trade at 0.8617.
Later in the day, the U.S. was to release private sector data on non-farm payrolls. Meanwhile, the Federal Reserve was to conclude its two-day policy-setting meeting; Fed Chairman Ben Bernanke was to conduct the bank’s post-policy meeting press conference.