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Forex - GBP/USD pushes lower after BoE meeting minutes

Published 10/22/2014, 04:47 AM
Pound drops vs. greenback, BoE minutes show split continues
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Investing.com - The pound pushed lower against the U.S. dollar on Wednesday, after the minutes of the Bank of England's latest policy meeting showed an ongoing split on the necessity of raising interest rates, while Tuesday's U.S. data continued to support the nation's currency.

GBP/USD hit 1.6038 during European morning trade, the pair's lowest since October 16; the pair subsequently consolidated at 1.6027, retreating 0.54%.

Cable was likely to find support at 1.5940, the low of October 16 and resistance at 1.6186, Tuesday's high.

The minutes of the BoE's October policy meeting showed that members voted unanimously to keep the asset puschase facility program on hold.

However, members Martin Weale and Ian McCafferty voted for the third consecutive time to raise interest rates to 0.75% from a record-low 0.5%.

The report came after BoE chief economist Andrew Haldane said Friday that he was in favor of keeping rates lower for longer due to uncertainties over the outlook for both domestic and global growth.

Investors were now looking ahead to Friday’s data on U.K. third quarter growth after recent economic reports saw investors push back expectations for a rate hike to the second half of 2015.

Meanwhile, demand for the greenback remained supported after a report by the National Association of Realtors on Tuesday showed that U.S. existing home sales rose to 5.17 million in September, the highest level of the year.

Sterling was also lower against the euro, with EUR/GBP rising 0.35% 0.7920.

Later in the day, the U.S. was to produce data on consumer prices.

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