Pound Climbs Amid Better-than-expected U.K. PMI
23 November 2022 - 8:14PM
RTTF2
The pound appreciated against its major counterparts in the
European session on Wednesday, as the nation's business activity
contracted less than expected in November and investors awaited the
minutes of the Federal Reserve's November meeting for fresh clues
on future rate hikes.
The S&P Global/Chartered Institute of Procurement &
Supply composite output index registered 48.3 in November, up
fractionally from 48.2 in October.
The score was expected to fall to 47.5 in November. Nonetheless,
the reading remained below 50.0 for the fourth straight month
suggesting contraction.
The services Purchasing Managers' Index remained unchanged at
48.8 in November, while the reading was forecast to fall to 48.0.
The manufacturing PMI also held steady at 46.2 versus the expected
score of 45.8.
The Fed minutes due to be released later in the day could offer
more signals on a moderation in the pace of tightening from next
month.
The GBP/JPY pair appreciated to a fresh 2-week high of 168.99.
The pound is likely to challenge resistance around the 174.00
level.
The GBP/USD pair touched an 8-day high of 1.1982. If the pound
rises further, it may find resistance around the 1.27 level.
The GBP/CHF pair climbed to a 2-week high of 1.1368, after
hitting a 2-day low of 1.1296 at 12:35 am ET. On the upside, 1.22
is likely seen as its next resistance level.
The pound firmed to near a 3-week high of 0.8625 against the
euro, from a 5-day low of 0.8701 it logged at 3:15 am ET. The pound
is seen finding resistance around the 0.84 level.
Looking ahead, the Fed minutes from the November 1-2 meeting are
set for release at 2:00 pm ET.
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