Forex - GBP/USD dips after Bernanke, BoE minutes ahead
Investing.com
Published Jul 18, 2012 04:03AM ET
GBP/USD hit 1.5633 during early European trade, the session low; the pair subsequently consolidated at 1.5640 dipping 0.08%.
Cable was likely to find support at 1.5522, Tuesday’s low and short-term resistance at 1.5676, Tuesday’s high and a two-week high.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke delivered a negative assessment of the outlook for the U.S. economy.
He said growth had lost momentum in the first half of the year and added that progress on cutting the U.S. unemployment rate was “frustratingly” slow.
However, he refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
Investors were looking ahead to the minutes of the Bank of England’s July meeting later in the session, when policymakers voted to implement a further GBP50 billion of stimulus measures.
The pound was hovering close to a three-and-a-half year low against the euro, with EUR/GBP dipping 0.05% to 0.7851.
Also Wednesday, the U.K. was to release official data on unemployment.
The U.S. was to publish official data on building permits and housing starts, while Ben Bernanke was to testify in front of the House Financial Services Committee.
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Written By: Investing.com
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