Shutterstock photo
Markets

Forex - Pound hits 3-day high vs. dollar but gains limited

Shutterstock photo

Shutterstock photo

Forex Pros - The pound rose to a three-day high against the U.S. dollar on Wednesday, but gains were limited amid uncertainty over the uneven nature of the economic recovery in the U.K.

GBP/USD hit 1.6082 during European morning trade, the pair's highest since last Friday; the pair subsequently consolidated at 1.6061, gaining 0.31%.

Cable was likely to find support at 1.5936, Monday's low and a two-month low and resistance at 1.6141, last Friday's high.

Earlier in the day, official data showed that Britain's services companies grew the most in almost nine years in January as hotels and restaurants recovered after the coldest December in a century.

The Office for National Statistics said services, which account for three quarters of the economy, rose 1.3% from the previous month, when they shrank 1.1%.

The statistics office also said that Chancellor of the Exchequer George Osborne's budget for the coming fiscal year will add 0.29% to consumer-price inflation, mainly due to an increase in taxation on cigarettes and alcohol.

The pound was also up against the euro, with EUR/GBP shedding 0.46% to hit 0.8773.

Later Wednesday, the U.K. was to publish industry data on retail sales while the U.S. was to publish a report on private sector employment by payroll processing firm ADP.

Forex News

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.

Other Topics

ForEx

Latest Markets Videos