Forex - EUR/GBP erases early gains after BOE keep policy unchanged

Published 11/04/2010, 11:04 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro erased early gains against the pound on Thursday, falling from a 7-day high after the Bank of England held off introducing a second round of quantitative easing along with its November rate statement.

EUR/GBP retreated from 0.8817, the pair’s highest since October 26 to hit 0.8753 during European afternoon trade, shedding 0.44%.

The pair was likely to find support at 0.8696, Wednesday’s low and resistance at 0.8821, the high of October 20.

Earlier in the day, the Bank of England left its benchmark interest rate unchanged at 0.50% for the 21st successive month in November. The bank also made no changes to its asset purchase plan.

The minutes of the meeting of the bank’s monetary policy committee will be published on Wednesday, November 17.

Meanwhile, the euro was up against the U.S. dollar, with EUR/USD soaring 0.79% to hit 1.4253.

Also Thursday, the European Central Bank kept its benchmark interest rate unchanged at 1.00% for the 18th consecutive month in November. Following the announcement ECB president Jean-Claude Trichet said the ECB's existing unconventional stimulus measures would be "temporary in nature."

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