(RTTNews) - The pound has been extending its gains against the euro and franc in European deals on Wednesday following upbeat U.K. house price and service PMI reports.
U.K. house prices increased unexpectedly in March after easing in February, reflecting wide fluctuations amid transactions at historic low levels, data from the Lloyds Banking Group's Halifax division showed.
House prices were 2.2 percent higher than a month ago in March, following February's 0.4 percent fall. Economists had expected a 0.4 percent drop for March. The latest increase is the biggest since May 2009, when prices rose 2.9 percent.
Meanwhile, a survey report by Markit Economics and the Chartered Institute of Purchasing and Supply showed that the U.K. service sector expanded at a faster pace in March. The seasonally adjusted purchasing managers' index for the service sector rose to 55.3 in March from 53.8 in February. Economists expected the index to drop to 53.4. The index remained in the expansionary territory for the fifteenth consecutive month.
The pound is now trading at a 16-day high of 0.8292 against the euro, compared to Tuesday's close of 0.8316. On the upside, 0.825 is seen as the next target level for the pound.
Eurozone private sector contracted less than previously estimated in March, a revised report from Markit Economics showed today. The Composite Output Index, that measures activity in both manufacturing and services, fell to a three-month low of 49.1 in March, but the reading came in above the flash reading of 48.7. The score was 49.3 in February.
The services business activity index scored 49.2 in March, up from 48.8 in February. The flash reading for March was 48.7.
Against the Swiss franc, the pound is currently trading near a 2-week high of 1.4528. The next upside target level for the pound-franc pair is seen at 1.455. At yesterday's close, the pair was quoted at 1.4486.
The pound that fell to a low of 131.21 against the yen at 2:15 am ET gained thereafter. As of now, the pound-yen pair is worth 131.60, compared to 131.87 hit late New York Tuesday.
After hitting a 6-day low of 1.5871 against the US dollar at 4 am ET, the pound recovered. The pound-dollar pair is currently worth 1.5900. The pair closed Tuesday's trading at 1.5914.
Looking ahead, Eurozone retail sales and German factory orders - both for February are expected at 5 am and 6 am ET, respectively.
At 7:45 am ET, the European Central Bank is due to announce its interest rate decision. The central bank is widely expected to keep rates on hold at 1 percent.
(RTTNews) - The U.S. ADP National employment report and the ISM non-manufacturing index - both for March are slated for release in the New York morning session.
