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Forex - GBP/USD hits daily low as rate outlook weighs

Published 04/11/2011, 04:39 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound was down against the U.S. dollar on Monday, falling to a daily low as diminished expectations for a near-term rate hike by the Bank of England weighed after the bank left rates on hold last week.

GBP/USD hit 1.6314 during European morning trade, the daily low; the pair subsequently consolidated at 1.6338, shedding 0.24%.

Cable was likely to find support at 1.6261, last Thursday’s low and resistance at 1.6427, Friday’s high and a 15-month high.

Last Thursday, the BoE held interest rates at a record low of 0.5%, amid uncertainty over the uneven nature of Britain’s economic recovery.

Data last week showed industrial output unexpectedly suffered its biggest fall since August 2009 in February, while a separate report showed that the services sector picked up in March to grow at its fastest pace in more than a year.

The pound was also lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8844.

Later in the day, the U.K. was to publish industry data on retail sales and house prices while the Federal Reserve Bank of Chicago President Charles Evans was to speak in Tokyo. Also Monday, Federal Reserve Governor Janet Yellen was to speak.

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