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Forex - Pound rises to daily high against broadly weaker dollar

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Forex Pros - The pound was up against the broadly weaker U.S. dollar on Tuesday, as concerns over a slowdown in the U.S. economic recovery after a soft patch of recent data continued to weigh on the greenback.

GBP/USD hit 1.6432 during European morning trade, the daily high; the pair subsequently consolidated at 1.6423, gaining 0.41%.

Cable was likely to find support at 1.6304, the low of June 2 and resistance at 1.6459, Monday's high and a three-day high.

Data on Friday showed that U.S. employment growth slowed sharply in May, reinforcing expectations that the Federal Reserve will not tighten monetary policy for some time to come.

On Monday, in its annual assessment of the U.K. economy, the International Monetary Fund said growth was broadly on track but further quantitative easing could be required if growth was to remain weak.

The Bank of England was to hold its policy setting meeting on Thursday, where the bank was widely expected to keep interest rates on hold at a record low after a recent flurry of weaker-than-expected economic data.

Meanwhile, the pound was lower against the euro, with EUR/GBP easing up 0.11% to hit 0.8921.

Later in the day, Fed Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.

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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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