Pound Higher As European Shares Advance

The pound was trading in a positive territory in European trading on Wednesday, as European shares rose on the back of positive corporate earnings and M&A activity.

Investors also cheered the rebound in oil, after news that Iran is ready to talk with Saudi Arabia over the current conditions in international oil markets.

Focus also shift towards semi-annual testimony from the Federal Reserve Chair Janet Yellen later today, which could shed more light on the Fed's policy outlook.

Deteriorating global outlook and volatility in financial markets since December have arose speculation that Yellen may concede about her change in plan to hike rate four times this year.

Data from the Office for National Statistics showed that British industrial production declined at a faster pace in December.

Industrial production fell 1.1 percent month-on-month, faster than November's 0.8 percent drop. Economists had forecast output to remain flat in December. This was the second consecutive fall in production.

Manufacturing output dropped at a pace of 0.2 percent, confounding expectations for a 0.1 percent rise. In November, output had fallen 0.3 percent.

The pound held steady against most majors in Asian deals.

In European trading now, the pound climbed to a 2-day high of 1.4535 against the greenback, off its early low of 1.4435. At Tuesday's close, the pair was valued at 1.4467. The pound is seen finding resistance around the 1.48 zone.

Reversing from an early low of 165.28 against the yen, the pound firmed to a 2-day high of 167.28. On the upside, 168.00 is possibly seen as its next resistance level.

Data from the Bank of Japan showed that Japan's producer prices fell 0.9 percent on month in January.

That missed forecasts for a decline of 0.7 percent following the 0.4 percent contraction in December.

The pound advanced to 0.7745 against the European currency, following a decline to 0.7819 at 8:30 pm ET. The pair was worth 0.7800 when it ended yesterday's trading. The next possible resistance for the pound may be located around the 0.76 mark.

The pound appreciated to 1.4162 against the Swiss franc, up by 0.84 percent from its early low of 1.4044. The pound is poised to target resistance around the 1.44 area.

Looking ahead, the NIESR U.K. GDP estimate for January and U.S. Federal budget statement for January are due to be released in the New York session.

At 9:00 am ET, European Central Bank Board member Peter Praet will deliver keynote speech at the "Lender of Last Resort: An International perspective" conference organized by Harvard University in Washington.

At 1:30 pm ET, Federal Reserve Bank of San Francisco President John Williams is scheduled to speak before the 2016 National Interagency Community Reinvestment Conference, "Pathways to Economic Opportunity," in Los Angeles.