Investing.com - The pound edged higher against the dollar on Wednesday, but sentiment on sterling remained fragile ahead of U.K. data on first quarter growth on Thursday.
GBP/USD hit 1.5267 during European morning trade, the session high; the pair subsequently consolidated at 1.5263, easing up 0.16%.
Cable was likely to find support at 1.5195, Tuesday’s low and near-term resistance at 1.5296, Tuesday’s high.
Market sentiment was boosted after Italian President Giorgio Napolitano said a new prime minister would be named later Wednesday, ending two months of political deadlock.
The news offset mounting speculation over a rate cut by the European Central Bank after a report showed that the Ifo index of German business climate fell to a four month low of 104.4 in April from 106.7 in March.
Analysts had expected the index to ease down to 106.2.
The data came one day after a report showed that Germany’s manufacturing and service sectors contracted in April.
Meanwhile, investors remained wary ahead of preliminary data on U.K. first quarter gross domestic product on Thursday amid cautious optimism that the economy would narrowly avoid a triple-dip recession.
In the U.K. a report by the British Banker's Association said that the number of new mortgages approved in March rose in line with expectations to 31,200 from February’s revised total of 30,600.
Sterling rose to eight-day highs against the euro, with EUR/GBP down 0.29% to 0.8506.
The U.S. was to produce government data on durable goods orders later in the trading day.
GBP/USD hit 1.5267 during European morning trade, the session high; the pair subsequently consolidated at 1.5263, easing up 0.16%.
Cable was likely to find support at 1.5195, Tuesday’s low and near-term resistance at 1.5296, Tuesday’s high.
Market sentiment was boosted after Italian President Giorgio Napolitano said a new prime minister would be named later Wednesday, ending two months of political deadlock.
The news offset mounting speculation over a rate cut by the European Central Bank after a report showed that the Ifo index of German business climate fell to a four month low of 104.4 in April from 106.7 in March.
Analysts had expected the index to ease down to 106.2.
The data came one day after a report showed that Germany’s manufacturing and service sectors contracted in April.
Meanwhile, investors remained wary ahead of preliminary data on U.K. first quarter gross domestic product on Thursday amid cautious optimism that the economy would narrowly avoid a triple-dip recession.
In the U.K. a report by the British Banker's Association said that the number of new mortgages approved in March rose in line with expectations to 31,200 from February’s revised total of 30,600.
Sterling rose to eight-day highs against the euro, with EUR/GBP down 0.29% to 0.8506.
The U.S. was to produce government data on durable goods orders later in the trading day.