Sterling hit a 2-1/2-month high versus the dollar on Thursday as the US currency suffered after weak economic data, and analysts said more gains may lie in store for the pound due to technical factors. Sterling was boosted as the dollar slumped across the board after data showing that US producer prices fell more than expected in June, while a gauge of regional manufacturing this month fell to its lowest since December 2009.
Other figures showed business conditions in the US mid-Atlantic region fell to their lowest since August 2009. The weak readings came a day after minutes from the US central bank showed policymakers believe they may need to do more to boost the economy if its recovery slows even more. Sterling rose as far as $1.5396, climbing nearly 1 percent on the day.
By 1502 GMT, it stood at $1.5370, up 0.7 percent on the day. Sterling was poised to close above technical resistance at $1.5310, the trendline from the November 2009 high of $1.6880. A close above that level would open the way to $1.5525/60, the April high and potentially the October 2009 low of around $1.5710, analysts at Commerzbank said in a note. The single currency rose about 0.5 percent to 84.02 pence, also boosted after a successful Spanish 15-year government bond auction.
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