Investing.com - The pound rose to session highs against the dollar and the euro on Wednesday after data showed that the U.K. service sector expanded at a faster than expected rate in February.
GBP/USD hit highs of 1.6694 and was last up 0.14% to 1.6687.
Cable was likely to find support at 1.6640, Tuesday’s low and resistance at 1.6750, Monday’s high.
The Markit U.K. services purchasing managers’ index for February came in at 58.2. It was the lowest reading in eight months, but was little changed from January’s reading of 58.1 and was ahead of forecasts for a decline to 58.0.
The report said jobs growth in the sector was down only slightly from January's almost 17-year high , as new orders continued to rise at a fast clip.
“The services economy notched up yet another month of robust growth in February, a performance that is all the more remarkable given the weather related disruptions that have hit many businesses,” Chris Williamson, Chief Economist at Markit said.
“Alongside vibrant growth in manufacturing and construction, the upbeat picture of the services economy points to the country enjoying another quarter of robust economic growth of approximately 0.7%.”
Elsewhere, sterling rose to session highs against the euro, with EUR/GBP down 0.13% to 0.8236.
In the euro zone, data on Wednesday confirmed that the region’s services purchasing managers’ index rose to 52.6 in February, from a final reading of 51.6 in January and higher than the flash estimate of 51.7.
The rate of growth in Italy’s service sector rose to an almost three year high last month.
The upbeat data dampened expectations that the European Central Bank would tighten monetary policy at its upcoming meeting on Thursday.