Investing.com - The pound was higher against the U.S. dollar on Wednesday, as market sentiment was lifted after media reports that the International Monetary Fund is looking at ways to boost its lending resources.
GBP/USD hit 1.5388 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.5378, gaining 0.31%.
Cable was likely to find support at 1.5276, Monday’s low and resistance at 1.5409, the high of January 13.
The pound tracked the euro higher, following media reports that the International Monetary Fund wants to reach an agreement on enlarging its lending capacity to USD1 trillion, from the existing USD385 billion, at a meeting of the Group of 20 nations due to take place at the end of February.
But worries over Europe’s debt crisis remained in focus after Fitch’s flagged a potential two-notch downgrade for Italy.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
Meanwhile, Greek Prime Minister Lucas Papademos was due to resume talks with bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down last week, amid disagreements over how much money investors will lose by swapping their bonds.
In the U.K., official data showed that the unemployment rate unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
The report also showed that the claimant count rose by a seasonally adjusted 1,200 in December, significantly below expectations for an increase of 8,000, indicating that the downturn in the labor market may be moderating.
Elsewhere, sterling was down against the euro, with EUR/GBP adding 0.42% to hit 0.8341.
Later Wednesday, the U.S. was to publish official data on producer price inflation and industrial production.
GBP/USD hit 1.5388 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.5378, gaining 0.31%.
Cable was likely to find support at 1.5276, Monday’s low and resistance at 1.5409, the high of January 13.
The pound tracked the euro higher, following media reports that the International Monetary Fund wants to reach an agreement on enlarging its lending capacity to USD1 trillion, from the existing USD385 billion, at a meeting of the Group of 20 nations due to take place at the end of February.
But worries over Europe’s debt crisis remained in focus after Fitch’s flagged a potential two-notch downgrade for Italy.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
Meanwhile, Greek Prime Minister Lucas Papademos was due to resume talks with bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down last week, amid disagreements over how much money investors will lose by swapping their bonds.
In the U.K., official data showed that the unemployment rate unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
The report also showed that the claimant count rose by a seasonally adjusted 1,200 in December, significantly below expectations for an increase of 8,000, indicating that the downturn in the labor market may be moderating.
Elsewhere, sterling was down against the euro, with EUR/GBP adding 0.42% to hit 0.8341.
Later Wednesday, the U.S. was to publish official data on producer price inflation and industrial production.