Forex - GBP/USD hits 2-day high as Cameron to unveil growth plan

Published 10/25/2010, 04:15 AM
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Investing.com – The pound was up against the U.S. dollar on Monday, climbing to a 2-day high ahead of the unveiling of a national infrastructure plan that U.K. Prime Minister David Cameron says will transform the fortunes of the country.

GBP/USD hit 1.5774 during early European trade, the pair’s highest since October 21; the pair subsequently consolidated at 1.5743, rising 0.38%.

Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.5848, the high of October 21.

Later in the day, Cameron in an an address to the Confederation of British Industry, was to unveil a national infrastructure plan that would set out the nation's requirements for growth, backed by investment of GBP 200 billion already set out in the spending review but also brought in through new private-sector channels.

Richard Lambert, the CBI's director-general, said: "Having acted fast to tackle the deficit, the government must now focus on how to attract more investment to the UK if we are to create new jobs and grow the economy. The UK needs to improve in the areas that really matter; otherwise other nations will steal a march on the UK as a place to invest”.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.31% to hit 0.8923.

Later in the day, the U.S. was to publish industry data on existing home sales while the U.K. was to publish industry data on mortgage approvals.

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