Investing.com - The pound hit a session high against the U.S. dollar on Thursday, after the Bank of England kept monetary policy unchanged, as investors anticipated details of the European Central Bank’s bond purchasing plan.
GBP/USD hit 1.5920 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.5916, inching up 0.09%.
Cable was likely to find support at 1.5824, Wednesday’s low and resistance at 1.5933, Wednesday’s high and a three-and-a-half month high.
The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely expected move.
The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP375 billion.
Market sentiment continued to be underpinned by expectations that the ECB will unveil more details of measures to help stabilize the region’s sovereign debt markets at its post-policy meeting press conference later in the day.
On Wednesday Bloomberg reported that the ECB is planning unlimited purchases of government bonds with maturities of up to three years, without setting bond yield targets.
France saw bond yields fall at an auction of five- and 10-year government bonds on Thursday, while Spain also saw borrowing costs decline at an auction of two-, three- and four-year government bonds.
The pound was unchanged against the euro, with EUR/GBP trading at 0.7923.
The U.S. was to release a report on ADP non-farm payrolls later in the session, followed by weekly government data on unemployment claims. The country was also to release a report by the Institute for Supply Management on service sector activity.
GBP/USD hit 1.5920 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.5916, inching up 0.09%.
Cable was likely to find support at 1.5824, Wednesday’s low and resistance at 1.5933, Wednesday’s high and a three-and-a-half month high.
The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely expected move.
The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP375 billion.
Market sentiment continued to be underpinned by expectations that the ECB will unveil more details of measures to help stabilize the region’s sovereign debt markets at its post-policy meeting press conference later in the day.
On Wednesday Bloomberg reported that the ECB is planning unlimited purchases of government bonds with maturities of up to three years, without setting bond yield targets.
France saw bond yields fall at an auction of five- and 10-year government bonds on Thursday, while Spain also saw borrowing costs decline at an auction of two-, three- and four-year government bonds.
The pound was unchanged against the euro, with EUR/GBP trading at 0.7923.
The U.S. was to release a report on ADP non-farm payrolls later in the session, followed by weekly government data on unemployment claims. The country was also to release a report by the Institute for Supply Management on service sector activity.