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Forex - GBP/USD holds at 3-week highs ahead of BoE decision

Published 12/10/2015, 04:40 AM
© Reuters.  Pound remains unchanged vs. dollar despite U.K. trade data
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Investing.com - The pound was almost unchanged at three-week highs against the U.S. dollar on Thursday, even after data showed that he U.K. trade deficit widened much more than expected in October, as investors awaited the Bank of England's policy decision later in the day.

GBP/USD hit 1.5196 during European morning trade, the pair's highest since November 20; the pair subsequently consolidated at 1.5178.

Cable was likely to find support at 1.5075, the low of December 4 and resistance at 1.5248, the high of November 18.

The U.K. Office for National Statistics reported that the country's trade deficit widened to £11.83 billion in October from £8.8 billion the previous month. Economists had expected the trade deficit to widen to £9.7 billion in October.

Later Thursday, the BoE was expected to leave its monetary policy unchanged.

Meanwhile, sentiment on the greenback remained fragile as investors became increasingly cautious ahead of the Fed's highly-anticipated policy meeting next week.

The U.S. dollar rallied to 11-/12 year highs against other major currencies earlier in the week after Friday's strong U.S. employment data added to expectations that the Fed will hike interest rates for the first time since 2006.

Sterling was higher against the euro, with EUR/GBP declining 0.50% to 0.7226.

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