The pound climbed against its major counterparts in early European deals on Wednesday, as European stocks rose in shortened trading, ahead of the New Year holiday.
Trading volumes were thin, with many markets either shut or finish early ahead of the New Year holiday.
With European docket being empty, investors eye U.S. reports on jobless claims, Chicago business activity and pending home sales later in the day for further direction.
Political uncertainty in Greece and plunging oil prices weighed on pound yesterday. Traders became nervous that snap election could yield power to anti-austerity leftists, who oppose deep budget cuts and want to renegotiate the terms of an international bailout.
The pound rose to a 2-day high of 1.5579 against the greenback, up from an early low of 1.5548. The next possible resistance for the pound-greenback pair is seen around the 1.58 zone.
The pound strengthened to 1.5421 against the Swiss franc, a level not seen since November 6. Continuation of the pound's uptrend may take it to a resistance around the 1.55 level. At yesterday's close, the pair was worth 1.5382.
The pound rose back to 186.36 against the yen, after declining to 185.68 at 9:00 pm ET. If the pound-yen pair extends rise, 187.5 is seen as its next possible resistance level.
Rebounding from an early low of 0.7816 against the euro, the pound strengthened to nearly 2-month high of 0.7797. Next key resistance for the pound may be found around the 0.77 region.
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