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Forex - GBP/USD steady with focus on BoE meeting

Published 07/03/2012, 04:05 AM
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EUR/GBP
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Investing.com - The pound was little changed against the U.S. dollar on Tuesday, as hopes that world central banks will take steps to bolster economic growth supported demand for higher-yielding assets.

GBP/USD hit 1.5713 during European morning trade, the session high; the pair subsequently consolidated at 1.5688, dipping 0.01%

Cable was likely to find near-term support at 1.5640, Monday’s low and resistance at 1.5720, Monday’s high and a seven-day high.

On Monday, a report showed that the U.S. manufacturing sector had contracted for the first time since July 2009 in June.

The weak data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing to support economic growth, which has been hit by the ongoing debt crisis in the euro zone.

In addition, the Bank of England was expected to implement a fresh round of stimulus measures to support the recession hit U.K. economy at its policy meeting on Thursday, while the European Central bank was expected to cut rates following its meeting the same day.

The pound was fractionally lower against the euro, with EUR/GBP inching up 0.09% to 0.8020.

Later Tuesday, the U.K. was to release official data on data net lending to individuals, as well as a report on construction sector activity.

Elsewhere, the U.S. was to publish official data on factory orders.


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