Investing.com - The pound extended gains against the U.S. dollar on Thursday, hitting a fresh session high after the Bank of England increased its quantitative easing program by GBP50 billion and left interest rates unchanged.
GBP/USD hit 1.5874 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.5868, gaining 0.32%.
Cable was likely to find support at 1.5749, the low of February 3 and resistance at 1.5928, Wednesday’s high and a 12-week high.
BoE policymakers voted to increase the stock of asset purchases financed by the issuance of central bank reserves by GBP50 billion to GBP325 billion, citing the "significant margin" of slack in the British economy.
The decision came amid renewed fears that the U.K. is slipping into a recession after recent data showing that the economy contracted in the fourth quarter.
The bank also left the benchmark interest rate unchanged at 0.5%, where it’s stood since March 2009, in a widely expected move.
Earlier in the day, official data showed that manufacturing production in the U.K. rose significantly more-than-expected in December, increasing for the first time in three months, while industrial production also rose more-than-expected.
A separate report showed that the U.K. goods trade deficit narrowed more-than-expected in January, contracting to GBP7.1 billion, from an upwardly revised GBP8.9 billion the previous month.
The pound was also higher against the euro, with EUR/GBP shedding 0.44% to hit 0.8342.
Investors remained cautious ahead of the European Central Bank’s policy meeting later in the day, amid expectations that the bank could flag a possible rate cut next month.
Meanwhile, market sentiment remained supported by hopes that Greece is moving closer to an agreement needed to secure a second bailout.
Also Thursday, the U.S. was to produce government data on initial jobless claims.
GBP/USD hit 1.5874 during European early afternoon trade, the session high; the pair subsequently consolidated at 1.5868, gaining 0.32%.
Cable was likely to find support at 1.5749, the low of February 3 and resistance at 1.5928, Wednesday’s high and a 12-week high.
BoE policymakers voted to increase the stock of asset purchases financed by the issuance of central bank reserves by GBP50 billion to GBP325 billion, citing the "significant margin" of slack in the British economy.
The decision came amid renewed fears that the U.K. is slipping into a recession after recent data showing that the economy contracted in the fourth quarter.
The bank also left the benchmark interest rate unchanged at 0.5%, where it’s stood since March 2009, in a widely expected move.
Earlier in the day, official data showed that manufacturing production in the U.K. rose significantly more-than-expected in December, increasing for the first time in three months, while industrial production also rose more-than-expected.
A separate report showed that the U.K. goods trade deficit narrowed more-than-expected in January, contracting to GBP7.1 billion, from an upwardly revised GBP8.9 billion the previous month.
The pound was also higher against the euro, with EUR/GBP shedding 0.44% to hit 0.8342.
Investors remained cautious ahead of the European Central Bank’s policy meeting later in the day, amid expectations that the bank could flag a possible rate cut next month.
Meanwhile, market sentiment remained supported by hopes that Greece is moving closer to an agreement needed to secure a second bailout.
Also Thursday, the U.S. was to produce government data on initial jobless claims.