Investing.com - The pound was trading close to 27-month highs against the dollar on Tuesday following comments by Bank of England Governor Mark Carney and data showing that manufacturing and industrial output in the U.K. rose in October.
GBP/USD hit session highs of 1.6466, the strongest level since August 2011 and was last up 0.07% to 1.6438.
Cable was likely to find support at 1.6360 and resistance at 1.6530.
Demand for the pound continued to be underpinned after BoE Governor Mark Carney said Monday the U.K. economy had regained considerable strength in recent months. The comments came during a speech in New York.
Sterling received an additional boost after data on Tuesday showing that U.K. industrial output rose strongly in October added to indications that the recovery is gaining traction and fuelled hopes that the BoE may tighten monetary policy ahead of other central banks.
The Office for National Statistics said industrial output increased by 0.4% in October, in line with forecasts and was up 3.2% from a year earlier. It was the largest annual gain in industrial output since January 2011.
The ONS said manufacturing production also rose 0.4% in October and was 2.7% higher on a year-over-year basis, the fastest annual growth since May 2011. Economists had forecast a 0.4% monthly increase and 2.9% annual gain.
In a separate report, the ONS said the U.K. trade deficit narrowed to GBP9.73 billion in October, from an upwardly revised deficit of GBP10.10 billion in September. Economists had expected the deficit to shrink to GBP9.35 billion.
The deficit on goods trade with the European Union rose to a record of almost GBP6.5 billion, from GBP6.2 billion in September.
Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP inching up 0.01% to 0.8363.
GBP/USD hit session highs of 1.6466, the strongest level since August 2011 and was last up 0.07% to 1.6438.
Cable was likely to find support at 1.6360 and resistance at 1.6530.
Demand for the pound continued to be underpinned after BoE Governor Mark Carney said Monday the U.K. economy had regained considerable strength in recent months. The comments came during a speech in New York.
Sterling received an additional boost after data on Tuesday showing that U.K. industrial output rose strongly in October added to indications that the recovery is gaining traction and fuelled hopes that the BoE may tighten monetary policy ahead of other central banks.
The Office for National Statistics said industrial output increased by 0.4% in October, in line with forecasts and was up 3.2% from a year earlier. It was the largest annual gain in industrial output since January 2011.
The ONS said manufacturing production also rose 0.4% in October and was 2.7% higher on a year-over-year basis, the fastest annual growth since May 2011. Economists had forecast a 0.4% monthly increase and 2.9% annual gain.
In a separate report, the ONS said the U.K. trade deficit narrowed to GBP9.73 billion in October, from an upwardly revised deficit of GBP10.10 billion in September. Economists had expected the deficit to shrink to GBP9.35 billion.
The deficit on goods trade with the European Union rose to a record of almost GBP6.5 billion, from GBP6.2 billion in September.
Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP inching up 0.01% to 0.8363.