Forex - GBP/USD slides as BoE considers further monetary easing
Investing.com
Published Jun 29, 2011 04:09AM ET
GBP/USD hit 1.5971 during early European trade, the daily low; the pair subsequently consolidated at 1.5992, slipping 0.07%.
Cable was likely to find support at 1.5910, Tuesday’s low and a five-month low and resistance at 1.6043, Tuesday’s high.
In testimony before parliament’s Treasury Committee on Tuesday, BoE policymakers appeared divided on whether the bank might need to resume its quantitative easing program.
Governor Mervyn King said more monetary easing could be viewed as too much of an "easy option" to tackle slow growth, but he also played down the prospect of imminent rate rises.
But monetary policy committee members Adam Posen and David Miles both expressed support for more asset purchases, as they believed the outlook for growth remained weak.
The pound was also down against the euro, with EUR/GBP rising 0.21% to hit 0.9001.
Later in the day, Greece's parliament was due to vote on an unpopular national austerity plan. The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
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Written By: Investing.com
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