Investing.com – The pound erased gains against the U.S. dollar on Wednesday, pulling back from a six-week high after a report showed that U.K. industrial order expectations fell more-than-expected in July.
GBP/USD pulled back from 1.6360, the pair’s highest since June 14, to hit 1.6363 during European early afternoon trade, shedding 0.24%.
Cable was likely to find support at 1.6264, Tuesday’s low and resistance at 1.6495, the high of June 1.
Earlier in the day, the Confederation of British Industry said its index of industrial order expectations declined to minus 10.0 in July, compared to reading of 1.0 in June.
Analysts had expected the index to decline to minus 3.0 in July.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
For the first time in two years, optimism regarding the general business situation fell among U.K. manufacturers while expectations of slower activity are driving a reappraisal of forward-looking business plans.
The pound remained supported as talks on raising the U.S. debt ceiling remained at an impasse, adding to concerns over a possible U.S. debt default or downgrade ahead of the August 2 deadline.
Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.12% to hit 0.8835.
Later in the day, the U.S. was to publish official data on durable goods orders, while the U.S. Federal Reserve was to publish its Beige Book.
GBP/USD pulled back from 1.6360, the pair’s highest since June 14, to hit 1.6363 during European early afternoon trade, shedding 0.24%.
Cable was likely to find support at 1.6264, Tuesday’s low and resistance at 1.6495, the high of June 1.
Earlier in the day, the Confederation of British Industry said its index of industrial order expectations declined to minus 10.0 in July, compared to reading of 1.0 in June.
Analysts had expected the index to decline to minus 3.0 in July.
On the index, a reading above 0.0 indicates increasing order volume is expected, below indicates expectations are for lower volume.
For the first time in two years, optimism regarding the general business situation fell among U.K. manufacturers while expectations of slower activity are driving a reappraisal of forward-looking business plans.
The pound remained supported as talks on raising the U.S. debt ceiling remained at an impasse, adding to concerns over a possible U.S. debt default or downgrade ahead of the August 2 deadline.
Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.12% to hit 0.8835.
Later in the day, the U.S. was to publish official data on durable goods orders, while the U.S. Federal Reserve was to publish its Beige Book.