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Forex - GBP/USD remains near 1-week highs as BoE holds

Published 10/09/2014, 07:06 AM
Pound holds near 1-week high vs. dollar after BoE statement
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Investing.com - The pound remained near one-week highs against the U.S. dollar on Thursday, after the Bank of England left its monetary policy unchanged and as the minutes of the Federal Reserve's most recent policy meeting continued to weigh on the greenback.

GBP/USD hit 1.6220 during European early afternoon trade, the pair's highest since October 2; the pair subsequently consolidated at 1.6211, adding 0.28%.

Cable was likely to find support 1.6029, Wednesday's low and resistance at 1.6288, the high of September 30.

In a widely expected move, the BoE voted to keep interest rates on hold at 0.5% and to keep the size of its asset purchase program unchanged at £375 billion.

The minutes of the meeting, due to be published in two weeks, would indicate how many monetary policy committee members voted in favor of a rate hike. The MPC was split in September for the second consecutive month, with two members voting in favor of a rate increase and two against.

Meanwhile, the dollar remained under pressure after the minutes of the Fed's September 16-17 policy on Wednesday showed that a number of officials believe the bank's current language painted the wrong picture on the timing of rate hikes and that an interest rate rise should be tied to U.S. economic progress.

The minutes also showed that the U.S. central bank cut its growth outlook due to the higher dollar and concerns over global weakness.

Elsewhere, sterling was steady against the euro, with EUR/GBP dipping 0.04% to 0.7873.

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