Investing.com – The pound erased losses against the U.S. dollar on Wednesday, clawing back up from a daily low after the minutes of the Bank of England’s July policy setting meeting were slightly less dovish than expected.
GBP/USD clawed back up from 1.6070, the daily low, to hit 1.6135 during European afternoon trade, inching up 0.07%.
Cable was likely to find support at 1.5904, the low of July 13 and resistance at 1.6177, Tuesday’s high.
The monetary policy committee meeting minutes released earlier showed that BoE policymakers voted 7-2 to keep rates unchanged at 0.5% this month.
"Recent developments had reduced the likelihood that a tightening in policy would be warranted in the near term," the minutes said.
The bank said that risks posed by an escalation of the euro zone’s sovereign debt crisis remained substantial and funding costs faced by major U.K. lenders remained elevated as a result.
However, there was no mention of policymakers favoring more bond purchases this month. The minutes of the central bank’s June meeting showed that some policymakers believed the growth outlook had weakened and some believed additional monetary stimulus would be necessary.
Meanwhile, the pound remained lower against the euro, with EUR/GBP rising 0.31% to hit 0.8806.
Later Wednesday, the U.S. was to publish industry data on existing home sales.
GBP/USD clawed back up from 1.6070, the daily low, to hit 1.6135 during European afternoon trade, inching up 0.07%.
Cable was likely to find support at 1.5904, the low of July 13 and resistance at 1.6177, Tuesday’s high.
The monetary policy committee meeting minutes released earlier showed that BoE policymakers voted 7-2 to keep rates unchanged at 0.5% this month.
"Recent developments had reduced the likelihood that a tightening in policy would be warranted in the near term," the minutes said.
The bank said that risks posed by an escalation of the euro zone’s sovereign debt crisis remained substantial and funding costs faced by major U.K. lenders remained elevated as a result.
However, there was no mention of policymakers favoring more bond purchases this month. The minutes of the central bank’s June meeting showed that some policymakers believed the growth outlook had weakened and some believed additional monetary stimulus would be necessary.
Meanwhile, the pound remained lower against the euro, with EUR/GBP rising 0.31% to hit 0.8806.
Later Wednesday, the U.S. was to publish industry data on existing home sales.