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Forex - GBP/USD near session highs after BoE holds

Published 05/09/2013, 07:16 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was trading close to session highs against the dollar on Thursday after the Bank of England left monetary policy unchanged at its latest policy setting meeting.

GBP/USD hit 1.5588 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5575, gaining 0.27%.

Cable was likely to find support at 1.5469, Wednesday’s low and near-term resistance at 1.5605, the high of May 1 and a two-and-a-half month high.

The BoE left interest rates at a record low 0.5% and maintained the size of its asset purchase program at GBP375 billion.

The pound advanced against the dollar earlier after data showed that U.K. industrial output beat expectations in March, fuelling optimism over the economic outlook.

The Office for National Statistics said industrial production in the U.K. rose 0.7% in March, better-than-expectations for a 0.2% increase, after rising by a downwardly revised 0.9% in February.

Industrial output was down 1.4% compared to a year earlier, better than expectations for a 2% drop, as unseasonably cold winter weather boosted electricity demand.

The ONS said U.K. manufacturing production rose by 1.1% in March, beating expectations for a 0.3% increase.

Sterling rose to session highs against the euro, with EUR/GBP down 0.38% to 0.8433.

The U.S. was to release official data on initial jobless claims later in the trading day.





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