Forex - GBP/USD rises to 3-day high ahead of U.K. inflation data
Investing.com
Published Jun 14, 2011 03:58AM ET
GBP/USD hit 1.6442 during early European trade, the pair’s highest since June 9; the pair subsequently consolidated at 1.6417, gaining 0.27%.
Cable was likely to find support at 1.6214, Monday’s low and resistance at 1.6495, the high of June 1.
On Monday, Bank of England policymaker Martin Weale said that the central bank needed to raise interest rates in the short-term to preserve the bank's inflation-fighting credibility and to give it more flexibility in the months ahead.
He acknowledged that "in the short term the performance of the economy would be weakened slightly" by raising rates despite warning that recent data already suggested "short term economic growth may be slightly weaker than we had hoped".
Meanwhile, the pound was slightly lower against the euro, with EUR/GBP inching up 0.04% to hit 0.8806.
Later in the day, the U.K. was to release government data on consumer price inflation, while the U.S. was to publish official data on retail sales and producer price inflation.
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Written By: Investing.com
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