Forex - GBP/USD erases early losses after Bernanke remarks

Published 10/05/2010, 04:07 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 Tuesday, surging to a fresh daily high, following remarks by Federal Reserve Chairman Ben Bernanke.

GBP/USD retreated from 1.5751, the daily low, to hit 1.5851 during European morning trade, gaining 0.12%.

Cable was likely to find support at 1.5668, last Thursday's low and resistance at 1.5922, last Thursday's high.

Late Monday, while addressing a forum in Rhode Island, Bernanke said that that the central bank’s first round of large-scale asset purchases improved the economy and that further buying will probably help more.

“The additional purchases -- although we don’t have precise numbers for how big the effects are -- I do think they have the ability to ease financial conditions,” Bernanke said.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.47% to hit 0.8687.

Later in the day, the U.K. was to release official data on service sector growth.

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