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Forex - GBP/USD erases losses ahead of BoE rate decision

Published 07/07/2011, 04:06 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound erased losses against the U.S. dollar on Thursday, pulling away from a seven-day low as the Bank of England looked set to leave rates unchanged at its policy setting meeting later in the day.

GBP/USD pulled back from 1.5943, the pair’s lowest since June 28 to hit 1.6011 during early European trade, inching up 0.05%.

Cable was likely to find support at 1.5910, the low of June 28 and a five-month low and resistance at 1.6090, Wednesday’s high.

The BoE looked set to leave its benchmark interest rate unchanged at 0.5% amid concerns over the uneven nature of the U.K.’s economic recovery.

The minutes of the central bank’s June policy meeting showed that some monetary policy committee members believed the growth outlook had weakened and some believed more monetary stimulus may be necessary.

The pound was also slightly higher against the euro, with EUR/GBP slipping 0.15% to hit 0.8933.

Also Thursday, the U.K. was to publish official data on manufacturing production while U.S. payroll processing firm ADP was to publish a report on non-farm payrolls. The U.S. was also to publish official data on initial jobless claims.

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