BRUSSELS (dpa-AFX) - The pound was higher against its most major counterparts in the European session on Wednesday, as Russia's withdrawal of some forces from the borders of Ukraine pushed up European shares and strong inflation data from the country added to hopes for a further rate hike by the Bank of England in March.
Russia announced an end to military drills in Crimea and released a video showing a column of tanks and military vehicles departing after exercises.
Easing Russia-Ukraine tensions sent stocks higher, lifting the pound.
Data from the Office for National Statistics showed that U.K. consumer price inflation accelerated at the fastest pace in nearly 30 years in January.
Consumer price inflation rose slightly to 5.5 percent in January from 5.4 percent in December. The rate was forecast to remain unchanged at 5.4 percent.
This was the highest inflation rate in the National Statistic series, which began in January 1997, and it was last higher in the historical modeled series in March 1992, when it stood at 7.1 percent.
The pound was up against the greenback, at a 5-day high of 1.3574. If the pound continues its rise, 1.37 is possibly seen as its next resistance level.
The pound firmed to a 5-day high of 157.12 against the yen from yesterday's close of 156.47. The pound is seen finding resistance around the 158.00 level.
The pound reached as high as 1.2561 against the franc, its strongest level since February 11. On the upside, 1.28 is possibly seen as its next resistance level.
The pound, however, was down against the euro, at a 5-day low of 0.8402. The pound may find support around the 0.86 level.
Looking ahead, Canada CPI for January and wholesale sales for December, as well as U.S. retail sales, industrial production and export and import prices, all for for January, business inventories data for December and NAHB housing market index for February will be released in the New York session.
The Fed minutes from the January 25-26 meeting are set for release at 2:00 pm ET.
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