Investing.com – The pound was up against the U.S. dollar on Thursday, rising to hit a fresh 2-day high, as investors awaited the outcome of the 2-day Group of 20 world economic summit.
GBP/USD hit 1.6178 during European morning trade, the pair’s highest since November 9; the pair subsequently consolidated at 1.6151, rising 0.18%.
Cable was likely to find support at 1.5960, Wednesday’s low, and resistance at 1.6293, the high of November 5.
Later in the day, G-20 leaders were to gather in Seoul, South Korea amid growing concerns about trade imbalances and currency controls. The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders.
Meanwhile, on Wednesday, the Bank of England said in its quarterly inflation report that while it expected inflation to drop below 2.0% by the end of 2012, there was a wider than usual divergence of views.
In the report, the central bank said, “There are significant uncertainties around the outlook for inflation. Chances of inflation being either above or below the target by the end of the forecast period are judged to be roughly equal”.
The pound was also up against the euro, with EUR/GBP falling 0.26% to hit 0.8527.
On Thursday, markets in the U.S. are closed in observance of Veterans Day.
GBP/USD hit 1.6178 during European morning trade, the pair’s highest since November 9; the pair subsequently consolidated at 1.6151, rising 0.18%.
Cable was likely to find support at 1.5960, Wednesday’s low, and resistance at 1.6293, the high of November 5.
Later in the day, G-20 leaders were to gather in Seoul, South Korea amid growing concerns about trade imbalances and currency controls. The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders.
Meanwhile, on Wednesday, the Bank of England said in its quarterly inflation report that while it expected inflation to drop below 2.0% by the end of 2012, there was a wider than usual divergence of views.
In the report, the central bank said, “There are significant uncertainties around the outlook for inflation. Chances of inflation being either above or below the target by the end of the forecast period are judged to be roughly equal”.
The pound was also up against the euro, with EUR/GBP falling 0.26% to hit 0.8527.
On Thursday, markets in the U.S. are closed in observance of Veterans Day.