Shutterstock photo
Markets

Forex - Pound up against weaker dollar ahead of BoE meeting

Shutterstock photo

Shutterstock photo

Forex Pros - The pound advanced to a two-day high against the broadly weaker U.S. dollar on Thursday, ahead of a policy setting meeting by the Bank of England later in the day.

GBP/USD hit 1.6466 during early European trade, the pair's highest since Tuesday; the pair subsequently consolidated at 1.6449, gaining 0.29%.

Cable was likely to find support at 1.6323, Tuesday's low and resistance at 1.6546, the high of May 31 and a one-month high.

On Wednesday, Federal Reserve Chairman Ben Bernanke said that the current pace of the U.S. economic recovery was "frustratingly slow" and "uneven," restrained by high unemployment levels and inadequate growth in the housing market.

The BoE was not expected to raise its official cash rate later in the day, amid concerns over the uneven nature of the U.K. economic recovery.

Data released late last month confirmed that U.K. gross domestic product grew just 0.5% in the first quarter, after contracting by the same amount in the final quarter of 2010.

Meanwhile, the pound was slightly lower against the euro, with EUR/GBP inching up 0.04% to hit 0.8893.

Also Thursday, the U.K. was to publish official data on its trade balance, while later in the day the U.S. was to publish official data on its trade balance as well as a weekly government report on initial jobless claims.

Forex News

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.

Other Topics

ForEx

Latest Markets Videos