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Forex - GBP/USD remains lower after BoE holds, Osborne comments

Published 12/05/2013, 07:16 AM
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Investing.com - The pound remained lower against the U.S. dollar on Thursday, after the Bank of England left its monetary policy unchanged, while markets eyed the release of U.S. economic reports later in the day.

GBP/USD hit 1.6338 during European afternoon trade, the session low; the pair subsequently consolidated at 1.6354, shedding 0.18%.

Cable was likely to find support at 1.6278, the low of November 28 and resistance at 1.6442, the high of December 2 and a 27-month high.

The BoE’s monetary policy committee voted to leave rates on hold at 0.5% and made no changes to the GBP375 billion quantitative easing stimulus package.

The announcement came after U.K. Chancellor of the Exchequer George Oborne said, in his Autumn Forecast Statement, that "Britain's economic plan is working", and he raised growth forecasts to 1.4% this year and 2.4% in 2014.

U.K. data released earlier this week had added to indications that the recovery in the U.K. is strengthening. On Tuesday a report showed that the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007.

Meanwhile, investors were also eyeing the release of a U.S. economic growth data later Thursday as well as a jobs report on Friday, after a string of positive data over the week added to expectations the Federal Reserve will soon begin tapering its montly asset purchases.

Sterling was also lower against the euro, with EUR/GBP adding 0.16% to 0.8310.

Later in the day, the U.S. was to publish a revised estimate of third quarter gross domestic product, as well as the weekly report on initial jobless claims and data on factory orders.


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