Forex - GBP/USD falls on BoE minutes, Ukraine uncertainty

By
A A A

Investing.com -

Investing.com - The pound edged lower against the dollar on Wednesday as investors digested the minutes from the Bank of England's June policy meeting, with tensions in Ukraine weighing on both currencies

In U.S. trading on Wednesday, GBP/USD was trading down 0.18% at 1.7034, up from a session low of 1.7024 and off a high of 1.7095.

Cable was likely to find support at 1.6952, the low from June 25, and resistance at 1.7100, Monday's high.


In the U.K., the minutes of the Bank of England's June meeting released earlier revealed that policymakers voted unanimously to keep monetary policy unchanged last month.

The minutes also said weak wage growth in the face of strong employment growth made it difficult to gauge the degree of slack in the labor market, which allowed the pound to soften against the greenback.

Some members of the monetary policy committee expressed concerns that raising rates too early could destabilize the recovery, given recent signs of weakness in the global economic recovery.

Separately, a report showed that mortgage approvals in the U.K. rose broadly in line with expectations in June.

The British Banker's Association reported that the number of new mortgages approved increased to 43,300 last month from May's revised total of 41,900, just below forecasts of 43,400.

Geopolitical worries watered down both currencies.

Earlier Wednesday, reports that two Ukrainian military aircraft were shot down over the rebel-held city of Donetsk only days after pro-Russian separatists allegedly shot down a Malaysian Airlines flight with a missile rattled nerves.

Geopolitical concerns sparked fears that the fallout from the Ukraine conflict, which could include fresh sanctions slapped on Russia, will dampen global recovery.

The European Union on Tuesday threatened Russia with harsher sanctions over Ukraine, while fighting in the Gaza Strip also kept investors on edge.

Elsewhere, sterling was down against the euro, with EUR/GBP up 0.15% at 0.7904, and down against the yen, with GBP/JPY down 0.16% at 173.87.

On Thursday, the U.S. is to produce data on unemployment claims, manufacturing activity and new home sales.

Investing.com
Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Forex and Currencies

Referenced Stocks:

Investing.com

Investing.com

More from Investing.com:

Related Videos

Stocks

Referenced

Most Active by Volume

75,427,639
  • $56.25 ▼ 1.58%
59,508,841
  • $16.67 ▼ 0.42%
47,696,026
  • $24.66 ▼ 0.64%
37,965,797
  • $3.80 ▼ 2.56%
29,288,629
  • $8 ▲ 0.25%
28,960,650
  • $131.78 ▼ 0.20%
26,875,249
  • $18.27 ▲ 1.56%
26,002,126
  • $34.01 ▲ 0.89%
As of 5/28/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com