NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - GBP/USD falls on BoE minutes, Ukraine uncertainty

Published 07/23/2014, 12:49 PM
Updated 07/23/2014, 12:51 PM
Pound slips against dollar on BoE, Ukraine uncertainty
GBP/USD
-
EUR/GBP
-
GBP/JPY
-

Investing.com - The pound edged lower against the dollar on Wednesday as investors digested the minutes from the Bank of England's June policy meeting, with tensions in Ukraine weighing on both currencies

In U.S. trading on Wednesday, GBP/USD was trading down 0.18% at 1.7034, up from a session low of 1.7024 and off a high of 1.7095.

Cable was likely to find support at 1.6952, the low from June 25, and resistance at 1.7100, Monday's high.

In the U.K., the minutes of the Bank of England’s June meeting released earlier revealed that policymakers voted unanimously to keep monetary policy unchanged last month.

The minutes also said weak wage growth in the face of strong employment growth made it difficult to gauge the degree of slack in the labor market, which allowed the pound to soften against the greenback.

Some members of the monetary policy committee expressed concerns that raising rates too early could destabilize the recovery, given recent signs of weakness in the global economic recovery.

Separately, a report showed that mortgage approvals in the U.K. rose broadly in line with expectations in June.

The British Banker's Association reported that the number of new mortgages approved increased to 43,300 last month from May’s revised total of 41,900, just below forecasts of 43,400.

Geopolitical worries watered down both currencies.

Earlier Wednesday, reports that two Ukrainian military aircraft were shot down over the rebel-held city of Donetsk only days after pro-Russian separatists allegedly shot down a Malaysian Airlines flight with a missile rattled nerves.

Geopolitical concerns sparked fears that the fallout from the Ukraine conflict, which could include fresh sanctions slapped on Russia, will dampen global recovery.

The European Union on Tuesday threatened Russia with harsher sanctions over Ukraine, while fighting in the Gaza Strip also kept investors on edge.

Elsewhere, sterling was down against the euro, with EUR/GBP up 0.15% at 0.7904, and down against the yen, with GBP/JPY down 0.16% at 173.87.

On Thursday, the U.S. is to produce data on unemployment claims, manufacturing activity and new home sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.