Investing.com – The pound slipped against the U.S. dollar on Thursday, after the Bank of England held interest rates at a record low of 0.5%, amid uncertainty over the uneven nature of Britain’s economic recovery.
GBP/USD hit 1.6304, an intra-day low, after retreating from 1.6333 during European early afternoon trade, sliding 0.17%.
Cable was likely to find support at 1.6090, Tuesday’s low and resistance at 1.6363, Wednesday’s high and a two-week high.
The BoE’s Monetary Policy Committee said last month that a rise in oil prices, fanned by tension in the Middle East and North Africa, had increased risks to both inflation and growth.
Markets had pared back expectations for a rate hike after poor U.K. industrial output data on Wednesday pointed to weaker first quarter economic growth.
A report showed industrial output unexpectedly suffered its biggest fall since August 2009 in February. In contrast, data on Tuesday showed the U.K. services sector picked up in March to grow at its fastest pace in more than a year.
Meanwhile, the pound was higher against the euro, with EUR/GBP slipping 0.18% to hit 0.8759.
Later in the day, the European Central Bank was to announce its minimum bid rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish a weekly report on initial jobless claims.
GBP/USD hit 1.6304, an intra-day low, after retreating from 1.6333 during European early afternoon trade, sliding 0.17%.
Cable was likely to find support at 1.6090, Tuesday’s low and resistance at 1.6363, Wednesday’s high and a two-week high.
The BoE’s Monetary Policy Committee said last month that a rise in oil prices, fanned by tension in the Middle East and North Africa, had increased risks to both inflation and growth.
Markets had pared back expectations for a rate hike after poor U.K. industrial output data on Wednesday pointed to weaker first quarter economic growth.
A report showed industrial output unexpectedly suffered its biggest fall since August 2009 in February. In contrast, data on Tuesday showed the U.K. services sector picked up in March to grow at its fastest pace in more than a year.
Meanwhile, the pound was higher against the euro, with EUR/GBP slipping 0.18% to hit 0.8759.
Later in the day, the European Central Bank was to announce its minimum bid rate. The announcement was to be followed by a closely watched press conference. Also Thursday, the U.S. was to publish a weekly report on initial jobless claims.