The pound moved up against the other major currencies on Wednesday’s European deals, as European shares rose and U.K. industrial output topped estimates in April.
Data from the Office for National Statistics showed that U.K. industrial output increased 0.4 percent month-on-month in April, exceeding the 0.1 percent increase seen by economists. The industrial output grew by 0.6 percent in March.
European stocks recovered their losses, following four straight sessions of declines. Focus shift to Greece debt talks, as Greece’s Prime Minister Alexis Tsipras is scheduled to meet German Chancellor Angela Merkel and French President Fran?ois Hollande today.
The U.K. finance minister George Osborne and the Bank of England governor Mark Carney are due to speak at annual Mansion House dinner in London at 4:00 pm ET. Carney’s speech will be closely watched for any clues regarding rate hike.
The pound was trading lower in the Asian session, after being modestly up on Tuesday.
Reversing from early lows of 0.7364 against the euro and 1.5368 versus the greenback, the pound climbed to a 2-day high of 0.7287 and more than a 2-week high of 1.5487, respectively. The pound was valued at 0.7331 against the euro and 1.5383 against the greenback at Tuesday’s close. The next possible resistance levels for the pound may be located around 1.56 against the greenback and 0.70 against the euro.
The pound, having fallen to 1.4265 against the franc at 4:30 am ET, climbed to a 2-day high of 1.4387. The pair was trading at 1.4313 when it ended Tuesday’s trading. If the pound extends rise, it is likely to find resistance around the 1.46 region.
The pound bounced off to 190.70 against the Japanese yen, off early 9-day low of 188.96. The pound is thus heading closer to pierce early 2-day high of 191.60. Continuation of the pound’s bullish trend may lead it to a resistance surrounding the 193.00 mark.
Looking ahead, U.S federal budget statement and U.K. NIESR GDP estimate, both for May, are slated for release in the New York session.
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