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Forex - GBP/USD hits 2-day high ahead of U.K. inflation data

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Forex Pros - The pound was up against the U.S. dollar on Tuesday, rising to a two-day high ahead of the release of a U.K. government report on consumer price inflation.

GBP/USD hit 1.6262 during European morning trade, the pair's highest since Friday; the pair subsequently consolidated at 1.6251, gaining 0.38%.

Cable was likely to find support at 1.6145, Friday's low and a five-week low and resistance at 1.6379, last Thursday's high.

The pound found support as the euro strengthened against the dollar after European Union Finance ministers endorsed a EUR78 billion bailout for Portugal on Monday and stepped up pressure on Greece to do more to win improved aid terms.

The pound rallied last week after the Bank of England raised its inflation forecasts in its quarterly report. A strong inflation figure could see the pound push higher if it added to expectations that the BoE may raise interest rates earlier than expected.

The pound was also higher against the euro, with EUR/GBP shedding 0.33% to hit 0.8714.

Later in the day, the U.S. was to publish official data on building permits and housing starts. The country was also to publish government data on the capacity utilization rate and industrial production.

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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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