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Forex - GBP/USD extends gains as U.K. inflation data awaited

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Forex Pros - The pound extended gains against the U.S. dollar in thin trade on Monday, rising to a fresh daily high as investors awaited the release of data on Tuesday, which was expected to show that U.K. inflation has remained above target.

GBP/USD hit 1.6344 during early U.S. trade, the daily high; the pair subsequently consolidated at 1.6328, gaining 0.62%.

Cable was likely to find support at 1.6130, the low of May 25 and resistance at 1.6382, Friday's high.

The pound regained ground lost on Friday, after official data showed that U.K. industrial output contracted sharply in April due to the extra public holiday for the Royal Wedding and supply chain disruptions caused by the Japanese earthquake.

The weak data reinforced expectations that the Bank of England is unlikely to raise interest rates this year.

Meanwhile, the greenback remained under pressure amid uncertainty over future U.S. monetary policy ahead of the end of the Federal Reserve's quantitative easing program at the end of the month.

The pound was also up against the euro, with EUR/GBP shedding 0.26% to hit 0.8818.

Later in the day, BoE policymaker Martin Weale was to speak at an event in London.

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


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

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