Forex - GBP/USD retreats from 3-day high after BoE minutes

Published 09/22/2010, 06:49 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound retreated from a 3-day high against the U.S. dollar on Wednesday, after the Bank of England indicated that it was joining the Federal Reserve in a move towards monetary easing.

GBP/USD retreated from 1.5715, the pair's highest since September 17, to hit 1.5655 during European afternoon trade, gaining 0.23%.

Cable was likely to find support at 1.5502, Tuesday's low and resistance at 1.5862, the high of August 11.

The minutes of the BoE September meeting said that policy makers saw a “reduction in growth prospects” for the second half of the year and added that that the risks to the U.K. inflation outlook were “substantial” in both directions.

“Members stood ready to respond in either direction as the balance of risks evolved,” the minutes said.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.55% to hit 0.8537.

On Tuesday, the Federal Reserve's monetary policy statement for October said the U.S. economic recovery would remain modest in the near term and indicated concern over sluggish U.S. growth and continuing low levels of inflation.



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