Investing.com – The pound eased off a 14-month high against the U.S. dollar on Wednesday, ahead of the release of minutes from the Bank of England’s most recent policy setting meeting and the unveiling of the nations budget.
GBP/USD hit 1.6315 during European morning trade, the daily low; the pair subsequently consolidated at 1.6322, sliding 0.25%.
Cable was likely to find support at 1.6291, Tuesday’s low and short-term resistance at 1.6400, Tuesday’s high and a 14-month high.
The pound has rallied this year, supported by expectations that the BoE will hike interest rates in the coming months as inflation continues to exceed the central banks targeted rate.
However uncertainty over the timing of any rate hikes has persisted due to uncertainty over the uneven nature of the U.K. economic recovery and the impact of events in Japan and the Middle East.
The pound was also lower against the euro, with EUR/GBP rising 0.13% to hit 0.8686.
Later in the day, Chancellor of the Exchequer George Osborne was to present the 2011 budget, containing tough austerity measures, to parliament.
GBP/USD hit 1.6315 during European morning trade, the daily low; the pair subsequently consolidated at 1.6322, sliding 0.25%.
Cable was likely to find support at 1.6291, Tuesday’s low and short-term resistance at 1.6400, Tuesday’s high and a 14-month high.
The pound has rallied this year, supported by expectations that the BoE will hike interest rates in the coming months as inflation continues to exceed the central banks targeted rate.
However uncertainty over the timing of any rate hikes has persisted due to uncertainty over the uneven nature of the U.K. economic recovery and the impact of events in Japan and the Middle East.
The pound was also lower against the euro, with EUR/GBP rising 0.13% to hit 0.8686.
Later in the day, Chancellor of the Exchequer George Osborne was to present the 2011 budget, containing tough austerity measures, to parliament.