Forex - GBP/USD steady after BoE holds pat on rates
Investing.com
Published Jun 09, 2011 07:20AM ET
GBP/USD hit 1.6466 during European early afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.6417, easing up 0.09%.
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.
The central bank's decision means that rates will stay at 0.5% for a 27th straight month, as a recent flurry of weaker-than-expected economic data overshadowed concerns about above target inflation.
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 bank said last month that inflation would be back on target within the next two years.
Elsewhere, the pound was lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8894.
Also Thursday, the European Central Bank was to hold its policy setting meeting, while the U.S. was to publish official data on its trade balance as well as a weekly government report on initial jobless claims.
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Written By: Investing.com
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