Forexpros – The pound strengthened against the dollar in early Asian trading Wednesday as investors sold dollars and snapped up other currencies to invest in stocks and other assets across the globe on optimism fueled by positive data.
GBP/USD was trading at 1.5680, up 0.11%, and slightly off from a session high of 1.5683 and comfortably above a low of 1.5658.
The pair was likely to test technical support at 1.5546 and resistance at 1.5744.
The dollar weakened against major currencies earlier during the day as better than expected German business confidence figures and turnout at the Spanish bond auction fueled optimism.
Furthermore in the U.S., housing starts in November rose 9.3%, outpacing earlier forecasts and giving investors more reason to sell dollars and invest in riskier but more rewarding asset classes.
The pound was down against the euro, with EUR/GBP up 0.26% at 0.8374, and down against the yen, with GPB/JPY down 0.01% at 122.00.
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