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Forex - GBP/USD eases up to daily high as sentiment improves

Published 03/16/2011, 05:03 AM
GBP/USD
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GBP/JPY
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Investing.com – The pound strengthened against the U.S. dollar on Wednesday, as stronger market sentiment dampened demand for safe haven currencies, but uncertainty over the continuing nuclear emergency in Japan remained.

GBP/USD hit 1.6131 during European morning trade, the daily high; the pair subsequently consolidated at 1.6093, easing up 0.09%.

Cable was likely to find support at 1.5977, Tuesday’s low and resistance at 1.6184, Tuesday’s high.

Earlier in the day, the Bank of Japan pumped cash into markets for a third day in a row, bringing its total liquidity injection to JPY55.6 trillion yen since Monday.

Sentiment was also boosted after the U.S. the Federal Reserve said Tuesday that it was unlikely to expand a USD600-billion bond purchase plan as the economic recovery appeared to be gathering momentum.

Meanwhile, Japanese authorities were battling to contain the fallout from the damaged Fukushima Daiichi nuclear plant, which was hit by the earthquake and tsunami that engulfed coastal regions of Japan on Friday.

The pound was also higher against the yen, with GBP/JPY rising 0.24% to hit 130.07.

Later in the day, the U.K. was to publish official data on employment while the U.S. was to publish a flurry of data, with reports on building permits as well as data on producer price inflation, housing starts and crude oil stockpiles.


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