Investing.com – The pound re-approached the daily high against the U.S. dollar on Monday, as risk appetite remained sharp amid renewed optimism over the strength of the global economic recovery.
GBP/USD hit 1.5489 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.5458, gaining 0.65%.
Cable was likely to find support at 1.5344, last Friday’s low, and resistance at 1.5532, the high of September 8.
Earlier in the day, the European Commission raised its growth forecast for the U.K. for 2010, saying that it now expected Britain’s economy to expand by 1.7%, up from its previous estimate of 1.2%.
The report also said that the EC increased its inflation expectations for the U.K. for 2010, projecting inflation would reach 3.0%, up from the spring forecast of 2.4% and well above the Bank of England's 2.0% targetd rate of inflation.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 1.02% to hit 0.8339.
Also Monday, industry data showed that demand for mortgages in the U.K. remained weak in July, traditionally a strong month.
GBP/USD hit 1.5489 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.5458, gaining 0.65%.
Cable was likely to find support at 1.5344, last Friday’s low, and resistance at 1.5532, the high of September 8.
Earlier in the day, the European Commission raised its growth forecast for the U.K. for 2010, saying that it now expected Britain’s economy to expand by 1.7%, up from its previous estimate of 1.2%.
The report also said that the EC increased its inflation expectations for the U.K. for 2010, projecting inflation would reach 3.0%, up from the spring forecast of 2.4% and well above the Bank of England's 2.0% targetd rate of inflation.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 1.02% to hit 0.8339.
Also Monday, industry data showed that demand for mortgages in the U.K. remained weak in July, traditionally a strong month.