Investing.com – The pound edged higher against the U.S. dollar on Wednesday, climbing to a daily high, but gains were limited ahead of the release of a U.K. government report on employment change.
GBP/USD hit 1.6302 during European morning trade, the daily high; the pair subsequently consolidated at 1.6279, easing up 0.14%.
Cable was likely to find support at 1.6226, Tuesday’s low and a one-week low and resistance at 1.6425, Monday’s high and a 15-month high.
Data on Tuesday showed that the rate of U.K. consumer price inflation unexpectedly slowed to 4% in March from 4.4% the previous month, dampening expectations for a near-term rate hike by the Bank of England.
Meanwhile, the British Retail Consortium reported that retail sales fell 1.9% from a year earlier, the most since the data began in 1995.
Although inflation is still 2% above the BoE’s targeted rate, the weaker reading eased pressure on the central bank to raise borrowing costs as the U.K. economy remains fragile.
The pound was almost unchanged against the euro, with EUR/GBP dipping 0.02% to hit 0.8900.
Later in the day, the U.K. was to publish official data on claimant count change and the unemployment rate. Also Wednesday, the U.S. was to publish government data on retail sales, while the Federal Reserve was to publish its Beige Book.
GBP/USD hit 1.6302 during European morning trade, the daily high; the pair subsequently consolidated at 1.6279, easing up 0.14%.
Cable was likely to find support at 1.6226, Tuesday’s low and a one-week low and resistance at 1.6425, Monday’s high and a 15-month high.
Data on Tuesday showed that the rate of U.K. consumer price inflation unexpectedly slowed to 4% in March from 4.4% the previous month, dampening expectations for a near-term rate hike by the Bank of England.
Meanwhile, the British Retail Consortium reported that retail sales fell 1.9% from a year earlier, the most since the data began in 1995.
Although inflation is still 2% above the BoE’s targeted rate, the weaker reading eased pressure on the central bank to raise borrowing costs as the U.K. economy remains fragile.
The pound was almost unchanged against the euro, with EUR/GBP dipping 0.02% to hit 0.8900.
Later in the day, the U.K. was to publish official data on claimant count change and the unemployment rate. Also Wednesday, the U.S. was to publish government data on retail sales, while the Federal Reserve was to publish its Beige Book.