Investing.com – The pound was up against the U.S. dollar on Wednesday, moving in lockstep with the euro, as investors awaited the release of the minutes from the Bank of England’s October meeting, when policymakers voted for more quantitative easing.
GBP/USD hit 1.5778 during early European trade, the daily high; the pair subsequently consolidated at 1.5755 gaining 0.26%.
Cable was likely to find support at 1.5631, Tuesday’s low and a four-day low and resistance at 1.5847, Monday’s high and an almost one-month high.
Earlier this month, BoE policymakers voted to increase the bank’s asset purchase program by GBP75 billion to shore up the U.K. economy which has come under pressure from government spending cuts, a slowdown in global growth and the deepening financial crisis in the euro zone.
The BoE left interest rates unchanged at a record low of 0.5% at the meeting.
Meanwhile, the euro remained supported amid guarded hopes that Sunday’s European Union summit would yield progress in dealing with the debt crisis in the euro zone, after German Chancellor Angela Merkel said the summit will mark an important step in resolving the region’s debt woes.
But risk appetite remained limited after Moody’s downgraded Spain's sovereign debt rating late Tuesday and said it was maintaining a negative outlook on Spain’s rating.
Elsewhere, the pound was lower against the euro, with EUR/GBP rising 0.16% to hit 0.8766.
Also Wednesday, the U.S. was to publish government report on building permits and housing starts as well as official data on consumer price inflation.
GBP/USD hit 1.5778 during early European trade, the daily high; the pair subsequently consolidated at 1.5755 gaining 0.26%.
Cable was likely to find support at 1.5631, Tuesday’s low and a four-day low and resistance at 1.5847, Monday’s high and an almost one-month high.
Earlier this month, BoE policymakers voted to increase the bank’s asset purchase program by GBP75 billion to shore up the U.K. economy which has come under pressure from government spending cuts, a slowdown in global growth and the deepening financial crisis in the euro zone.
The BoE left interest rates unchanged at a record low of 0.5% at the meeting.
Meanwhile, the euro remained supported amid guarded hopes that Sunday’s European Union summit would yield progress in dealing with the debt crisis in the euro zone, after German Chancellor Angela Merkel said the summit will mark an important step in resolving the region’s debt woes.
But risk appetite remained limited after Moody’s downgraded Spain's sovereign debt rating late Tuesday and said it was maintaining a negative outlook on Spain’s rating.
Elsewhere, the pound was lower against the euro, with EUR/GBP rising 0.16% to hit 0.8766.
Also Wednesday, the U.S. was to publish government report on building permits and housing starts as well as official data on consumer price inflation.