Forex - GBP/USD edges cautiously higher in thin trade

Published 11/25/2010, 03:14 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound erased early losses against the U.S. dollar on Thursday, edging up slightly to hit a daily high amid thin trade before the U.S. Thanksgiving holiday.

GBP/USD clawed up from 1.5743, the daily low, to hit 1.5773 during late Asian trade, gaining 0.02%.

Cable was likely to find support at 1.5690, the low of October 26 and resistance at 1.5865, the high of October 27.

Concerns that Ireland’s fiscal crisis could spread to other vulnerable euro zone members lingered, even after the Irish government laid out an austerity budget which was expected to unlock a bailout by the European Union and the International Monetary Fund.

Also weighing on sentiment were fears that the EUR750 billion rescue mechanism created by the IMF and the EU would run out of cash if either Spain or Portugal were to follow Ireland and request a bailout.

The pound was also up against the euro, with EUR/GBP slipping 0.03% to hit 0.8451.

Later in the day, the U.K. was to publish industry data on retail sales, while Bank of England Governor Mervyn King and several BoE Monetary Policy Committee members were due to testify on inflation before Parliament's Treasury Committee.

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