Investing.com – The pound hit a 14-month high against the U.S. dollar on Tuesday, boosted by expectations that the Bank of England will raise interest rates ahead of the U.S. Federal Reserve, while markets awaited U.K. data on inflation.
GBP/USD hit 1.6358 during European morning trade, the pair’s highest since January 20, 2010; the pair subsequently consolidated at 1.6355, gaining 0.28%.
Cable was likely to find support at 1.6202, Monday’s low and short-term resistance at 1.6514, the high of December 7, 2009.
The pound has rallied this year on the view that the BoE will increase interest rates but uncertainty remains over the timing due to the uneven nature of the U.K. economic recovery.
The dollar was weighed by higher oil prices as widening unrest in the Middle East fuelled fears over supply disruptions and by expectations that the Fed will lag behind other major central banks in raising rates.
The pound was also higher against the yen, with GBP/JPY rising 0.31% to hit 132.54.
Later in the day, the U.K. was to publish official data on consumer price inflation as well as a report on public borrowing.
GBP/USD hit 1.6358 during European morning trade, the pair’s highest since January 20, 2010; the pair subsequently consolidated at 1.6355, gaining 0.28%.
Cable was likely to find support at 1.6202, Monday’s low and short-term resistance at 1.6514, the high of December 7, 2009.
The pound has rallied this year on the view that the BoE will increase interest rates but uncertainty remains over the timing due to the uneven nature of the U.K. economic recovery.
The dollar was weighed by higher oil prices as widening unrest in the Middle East fuelled fears over supply disruptions and by expectations that the Fed will lag behind other major central banks in raising rates.
The pound was also higher against the yen, with GBP/JPY rising 0.31% to hit 132.54.
Later in the day, the U.K. was to publish official data on consumer price inflation as well as a report on public borrowing.