Investing.com – The pound pared gains against the U.S. dollar on Thursday, as markets shifted focus to the Group of 20 world economic summit, which got underway in Seoul.
GBP/USD hit 1.6178 during European morning trade, the pair’s highest since November 9; the pair subsequently consolidated at 1.6134, gaining 0.07%.
Cable was likely to find support at 1.5960, Wednesday’s low, and resistance at 1.6293, the high of November 5.
On Thursday, G-20 leaders began a 2-day world economic summit 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 including Germany and China.
Speaking ahead of the summit, U.S. Treasury Secretary Timothy Geithner said, “We think everyone’s going to have an interest in defusing some of the tension and agreeing on a multilateral process for helping resolve these pressures with less risk of financial market stress and political pressure,”.
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 tumbling 0.93% to hit 0.8469.
Earlier in the day, the U.K. Council for Mortgage Lenders, an industry group, said English banks repossessed 5% fewer homes in the third-quarter than in the previous quarter, as low interest rates helped people keep up with mortgage payments.
GBP/USD hit 1.6178 during European morning trade, the pair’s highest since November 9; the pair subsequently consolidated at 1.6134, gaining 0.07%.
Cable was likely to find support at 1.5960, Wednesday’s low, and resistance at 1.6293, the high of November 5.
On Thursday, G-20 leaders began a 2-day world economic summit 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 including Germany and China.
Speaking ahead of the summit, U.S. Treasury Secretary Timothy Geithner said, “We think everyone’s going to have an interest in defusing some of the tension and agreeing on a multilateral process for helping resolve these pressures with less risk of financial market stress and political pressure,”.
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 tumbling 0.93% to hit 0.8469.
Earlier in the day, the U.K. Council for Mortgage Lenders, an industry group, said English banks repossessed 5% fewer homes in the third-quarter than in the previous quarter, as low interest rates helped people keep up with mortgage payments.