Forex - GBP/USD hits fresh 10-month high after BOE, jobless claims

Published 11/04/2010, 09:03 AM
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Investing.com – The pound extended earlier gains against the U.S. dollar on Thursday, soaring to a fresh 10-month high after the Bank of England held monetary policy steady and U.S. jobless initial jobless claims rose more-than-expected.

GBP/USD hit 1.6277 during European afternoon trade, the pair’s highest since January 22; the pair subsequently consolidated at 1.6268, jumping 1.17%.

Cable was likely to find support at 1.6005, Wednesday’s low and resistance at 1.6456, the high of January 19.

Earlier in the day, the Bank of England left its benchmark interest rate unchanged at 0.50% for the 21st successive month in November. The bank also made no changes to its asset purchase plan.

The minutes of the meeting of the bank’s monetary policy committee will be published on Wednesday, November 17.

Also Wednesday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose last week to a seasonally adjusted 457K, after falling to a revised 437K in the preceding week.

Analysts had expected initial jobless claims to remain unchanged last week.

The pound was also up against the euro, with EUR/GBP shedding 0.30% to hit 0.8765.

Late Wednesday, the Federal Reserve announced that it would buy USD 600 billion of U.S. government bonds over the next eight months in an effort to kick-start a "disappointingly slow" economic recovery.

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