Investing.com - The pound was higher against the U.S. dollar on Thursday, ahead of the Bank of England’s interest rate announcement later in the session, as recent weak U.K. data undermined hopes for a sustained recovery in the recession hit economy.
GBP/USD hit 1.6134 during European morning trade, the session high; the pair subsequently consolidated at 1.6112, gaining 0.22%.
Cable was likely to find support at 1.6065, Wednesday’s low and resistance at 1.6174, the high of October 1.
Market sentiment continued to be underpinned by speculation that Spain will soon request a bailout and trigger a bond buying program by the European Central Bank, which investors hope will ease the debt crisis in the region.
Meanwhile, Wednesday’s stronger-than-forecast U.S. service sector and private sector employment data soothed concerns over the outlook for global economic growth.
The BoE was not expected to announce any changes to monetary policy at the conclusion of its policy meeting later in the day, but expectations that the bank could ease policy next month mounted amid growing concerns over the faltering economy.
Data on Wednesday showed that the U.K. service sector shed jobs for the first time in 10 months in September as growth slowed.
Sterling was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8026.
The ECB was expected to keep rates on hold following its policy meeting later Thursday.
Market participants were also looking the weekly U.S. government report on initial jobless claims and the minutes of the Federal Reserve’s most recent policy meeting.
GBP/USD hit 1.6134 during European morning trade, the session high; the pair subsequently consolidated at 1.6112, gaining 0.22%.
Cable was likely to find support at 1.6065, Wednesday’s low and resistance at 1.6174, the high of October 1.
Market sentiment continued to be underpinned by speculation that Spain will soon request a bailout and trigger a bond buying program by the European Central Bank, which investors hope will ease the debt crisis in the region.
Meanwhile, Wednesday’s stronger-than-forecast U.S. service sector and private sector employment data soothed concerns over the outlook for global economic growth.
The BoE was not expected to announce any changes to monetary policy at the conclusion of its policy meeting later in the day, but expectations that the bank could ease policy next month mounted amid growing concerns over the faltering economy.
Data on Wednesday showed that the U.K. service sector shed jobs for the first time in 10 months in September as growth slowed.
Sterling was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8026.
The ECB was expected to keep rates on hold following its policy meeting later Thursday.
Market participants were also looking the weekly U.S. government report on initial jobless claims and the minutes of the Federal Reserve’s most recent policy meeting.