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