Pound rises vs dollar, but gains seen limited due to Greece jitters
The British currency rose against its US peer on Wednesday, however gains were capped, as market players were concerned over Greece's uncertain future in the euro zone.
GBP/USD hit 1.5297 during European morning trade, the pair's highest since February 6; the pair subsequently consolidated at 1.5283, adding 0.19%. The pair was likely to find support at 1.4134, the low of February 4 and resistance at 1.5354, the high of February 6, says Investing.com.
The pound also rose against the euro, with EUR/GBP shedding 0.21% to 0.7406.
Traders remained wary following reports the European Commission could propose a six-month extension to Greece’s existing bailout program at an emergency meeting of the euro group of finance ministers, taking place later in the day.
It is expected that Greece will ask for a bridge loan to cover its funding needs until September, and to also propose new economic reforms to replace some of the harshest austerity conditions attached to its bailout.
At the same time, German Finance Minister Wolfgang Schaeuble dampened hopes Wednesday morning, by saying there are no plans to discuss a new agreement.
On Wednesday the pound had strengthened after the Office for National Statistics reported that U.K. manufacturing production rose 0.1% in December, compared to expectations for a 0.1% downtick. November's figure was revised to a 0.8% increase from a previously estimated 0.7% rise.
On an annualized basis, manufacturing production rose at rate of 2.4% in December, above expectations for a gain of 2.0%.
