Investing.com – The pound trimmed gains against the U.S. dollar on Thursday, retreating from a 12-week high ahead of the release of a string of U.S. economic data.
GBP/USD retreated from 1.6278, the pair’s highest since November 5, to hit 1.62 during European afternoon trade, gaining 0.04%.
Cable was likely to find support at 1.6126, Wednesday’s low and resistance at 1.6296, the high of November 4 and an 11-month high.
The pound’s earlier gains came after data showed that the U.K. services sector rebounded sharply in January, as business recovered from December’s snow-related disruption.
The Markit/CIPS Business Activity Index rose to 54.5 in January, its highest level since last May, comfortably beating expectations for an increase to 51.2.
The strong data fuelled expectations that the Bank of England may need to tighten monetary policy in the first half of 2011, after better-than-expected U.K. manufacturing and construction PMI surveys for January, released earlier in week, helped to offset a surprise contraction in U.K. fourth quarter GDP.
The pound was also higher against the euro, with EUR/GBP shedding 0.51% to hit 0.8485.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as data on labor costs, productivity and factory orders. In addition, the Institute of Supply Management was to publish its non-manufacturing PMI.
Also Thursday, the chairman of the Federal Reserve, Ben Bernanke was to speak at a public engagement.
GBP/USD retreated from 1.6278, the pair’s highest since November 5, to hit 1.62 during European afternoon trade, gaining 0.04%.
Cable was likely to find support at 1.6126, Wednesday’s low and resistance at 1.6296, the high of November 4 and an 11-month high.
The pound’s earlier gains came after data showed that the U.K. services sector rebounded sharply in January, as business recovered from December’s snow-related disruption.
The Markit/CIPS Business Activity Index rose to 54.5 in January, its highest level since last May, comfortably beating expectations for an increase to 51.2.
The strong data fuelled expectations that the Bank of England may need to tighten monetary policy in the first half of 2011, after better-than-expected U.K. manufacturing and construction PMI surveys for January, released earlier in week, helped to offset a surprise contraction in U.K. fourth quarter GDP.
The pound was also higher against the euro, with EUR/GBP shedding 0.51% to hit 0.8485.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as data on labor costs, productivity and factory orders. In addition, the Institute of Supply Management was to publish its non-manufacturing PMI.
Also Thursday, the chairman of the Federal Reserve, Ben Bernanke was to speak at a public engagement.