Forex Pros – The pound was slightly higher against the U.S. dollar on Wednesday, but gains were limited after weak U.K. construction data reinforced views that interest rates could stay on hold throughout 2011.
GBP/USD hit 1.6543 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.6516, gaining 0.18%.
Cable was likely to find support at 1.6384, the low of April 21 and resistance at 1.6660, Tuesday’s high.
The Markit/CIPS headline construction PMI index fell to 53.3 in April from 56.4 in March. Economists had expected the index to decline to 55.5.
A separate report from the Bank of England showed that lending to British consumers and homebuyers rose less-than-expected in March while U.K. mortgage lender Nationwide said earlier that house prices fell in April for the first time in three months and values will probably remain unchanged or decline “modestly” during the rest of this year.
Meanwhile, the pound was slightly lower against the euro, with EUR/GBP easing up 0.06% to hit 0.8997.
Later in the day, the U.S. was to publish data on ADP non-farm payrolls while the U.S. Institute for Supply Management was to publish its non-manufacturing PMI.
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