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Forex - GBP/USD climbs as MPC minutes, Fed rate move eyed

Published 06/23/2010, 04:28 AM
GBP/USD
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EUR/GBP
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Investing.com – Sterling rose against the U.S. dollar on Wednesday, hitting a 2-day high ahead of the release of minutes from the Bank of England's last policy-setting meeting and a key interest rate decision by the U.S. Federal Reserve.

GBP/USD hit 1.4877 during early European trade, cable's highest since Monday; the pair subsequently consolidated around 1.4866, advancing 0.33%.

Cable was likely to find support at 1.4645, the low of June 17, and resistance at 1.5147, the high of May 6.

Later in the day, the Fed was expected to leave its benchmark interest rate at a record low and reiterate a pledge to leave it there for some time, in light of the fragile U.S. economic recovery and ongoing threats posed by Europe's debt crisis, high unemployment and a frail housing market.

The pound also rose versus the euro on Wednesday, with EUR/GBP shedding 0.22% to reach 0.8265.

Meanwhile, the U.K. chancellor of the exchequer, George Osborne, on Tuesday unveiled GBP 29 billion of annual tax rises and the biggest cuts in public spending in almost a century, in a bid to slash Britain's budget deficit.

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