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Forex - GBP/USD edges higher but gains seen limited

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Investing.com -

Investing.com - The pound edged higher against the U.S. dollar on Wednesday, but gains were expected to remain limited as markets were still jittery amid uncertainty over Greece's future in the euro zone.

GBP/USD hit 1.5297 during European morning trade, the pair's highest since February 6; the pair subsequently consolidated at 1.5283, adding 0.19%.

Cable was likely to find support at 1.4134, the low of February 4 and resistance at 1.5354, the high of February 6.

Investors remained cautious following reports the European Commission could propose a six-month extension to Greece's existing bailout program at an emergency meeting of the euro group of finance ministers, due to take place later in the day.

Athens is expected to ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace some of the harshest austerity conditions attached to its bailout.

However, German Finance Minister Wolfgang Schaeuble dampened hopes Wednesday morning, by saying there are no plans to discuss a new agreement.

The pound had strengthened on Wednesday after the Office for National Statistics reported that U.K. manufacturing production rose 0.1% in December, compared to expectations for a 0.1% downtick. November's figure was revised to a 0.8% increase from a previously estimated 0.7% rise.

On an annualized basis, manufacturing production rose at rate of 2.4% in December, above expectations for a gain of 2.0%.

Sterling was also higher against the euro, with EUR/GBP shedding 0.21% to 0.7406.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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