Investing.com - The pound was steady close to a one-month high against the U.S. dollar on Wednesday, but sentiment on sterling remained fragile as investors awaited the U.K. autumn budget statement later in the session.
GBP/USD hit 1.6118 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6105, edging up just 0.03%.
Cable was likely to find support at 1.6012, Monday’s low and near-term resistance at 1.6129, Tuesday’s high and a one-month high.
The pound remained supported as market sentiment was bolstered by progress in dealing with the debt crisis in the euro zone, after Greece launched a scheme to buy back debt from private investors.
But concerns over the outlook for the U.K. economic recovery were underlined after data on Wednesday showed that the U.K. service sector expanded at the slowest pace in almost two years in November as new orders declined.
The Markit/CIPS services purchasing managers' index fell to 50.2 last month from October's reading of 50.6, compared to expectations for a rise to 51.1.
Market participants were anticipating lower growth forecasts and more austerity cuts from Chancellor George Osborne in his autumn budget statement later Wednesday, which could increase prospects for more easing by the Bank of England.
Sterling was higher against the euro, with EUR/GBP slipping 0.18% to 0.8117.
The euro came off session highs after Spain failed to sell the full targeted amount at an auction of government bonds, while weak euro zone retail sales data for October also weighed on the single currency.
Later Wednesday, the U.S. was to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the Institute of Supply Management was to produce a report on service sector activity.
GBP/USD hit 1.6118 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6105, edging up just 0.03%.
Cable was likely to find support at 1.6012, Monday’s low and near-term resistance at 1.6129, Tuesday’s high and a one-month high.
The pound remained supported as market sentiment was bolstered by progress in dealing with the debt crisis in the euro zone, after Greece launched a scheme to buy back debt from private investors.
But concerns over the outlook for the U.K. economic recovery were underlined after data on Wednesday showed that the U.K. service sector expanded at the slowest pace in almost two years in November as new orders declined.
The Markit/CIPS services purchasing managers' index fell to 50.2 last month from October's reading of 50.6, compared to expectations for a rise to 51.1.
Market participants were anticipating lower growth forecasts and more austerity cuts from Chancellor George Osborne in his autumn budget statement later Wednesday, which could increase prospects for more easing by the Bank of England.
Sterling was higher against the euro, with EUR/GBP slipping 0.18% to 0.8117.
The euro came off session highs after Spain failed to sell the full targeted amount at an auction of government bonds, while weak euro zone retail sales data for October also weighed on the single currency.
Later Wednesday, the U.S. was to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the Institute of Supply Management was to produce a report on service sector activity.