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Forex - GBP/USD holds gains after better-than-expected ADP data

Published 02/02/2011, 10:54 AM
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EUR/GBP
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Investing.com – The pound held gains against the U.S. dollar on Wednesday, trading close to a three-month high after a private report showed U.S. employers added more jobs last month than analysts expected.

GBP/USD hit 1.623 during European late afternoon trade, the pair’s highest since November 5, the pair subsequently consolidated at 1.6207, gaining 0.38%.

Cable was likely to find support at 1.6126, the day’s low and resistance at 1.6293, the high of November 5.

Earlier in the day, data showed that construction activity in the U.K. rebounded in January, helped by better weather and a rise in new business.

The Markit/CIPS purchasing managers index rose to 53.7 in January from December's reading of 49.1, which had been the first fall in 10 months, due to an unexpectedly severe start to the winter.

Coming after a manufacturing PMI survey on Tuesday that came way above forecasts, the data offered a further sign that the economy was rebounding in 2011 after a poor fourth quarter.

Seperately, Bank of England policymaker Andrew Sentance said earlier Wednesday that the longer the central bank delayed taking action against rising inflation the bigger the threat to its credibility.

The pound was also higher against the euro, with EUR/GBP shedding 0.43% to hit 0.8528.

Meanwhile, in the U.S., a report showed that private employers added 187,000 jobs in January, compared with a downwardly revised gain of 247,000 jobs in December.

Analysts had expected employers to add 150,000 jobs in January.

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