Investing.com – The pound remained supported close to a six-week high against the U.S. dollar on Tuesday, as hopes for a breakthrough on the euro zone debt crisis boosted risk appetite.
GBP/USD hit 1.6023 during European afternoon trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.6000, inching up 0.02%.
Cable was likely to find support at 1.5899, Monday’s low and resistance at 1.6082, the high of September 8.
Market sentiment was boosted by cautious hopes that European Union leaders may be making progress on a comprehensive plan to tackle the region’s debt crisis ahead of Wednesday’s critical summit meeting.
In the U.K., BoE Deputy Governor Charles Bean told the U.K. parliament's Treasury Select Committee earlier that the central bank’s second round of monetary stimulus was likely to add half a percentage point to the U.K. inflation rate and approximately half a percentage point to growth.
The BoE voted unanimously to implement a second round of easing at its October policy meeting, amid concerns over weakening economic conditions in the U.K.
BoE Governor Mervyn King said that when it was time to tighten monetary policy the bank would start by raising the benchmark interest rate from its current record low level of 0.5%.
Elsewhere, the pound was lower against the euro, with EUR/GBP slipping 0.11% to hit 0.8696.
Later Tuesday, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.
GBP/USD hit 1.6023 during European afternoon trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.6000, inching up 0.02%.
Cable was likely to find support at 1.5899, Monday’s low and resistance at 1.6082, the high of September 8.
Market sentiment was boosted by cautious hopes that European Union leaders may be making progress on a comprehensive plan to tackle the region’s debt crisis ahead of Wednesday’s critical summit meeting.
In the U.K., BoE Deputy Governor Charles Bean told the U.K. parliament's Treasury Select Committee earlier that the central bank’s second round of monetary stimulus was likely to add half a percentage point to the U.K. inflation rate and approximately half a percentage point to growth.
The BoE voted unanimously to implement a second round of easing at its October policy meeting, amid concerns over weakening economic conditions in the U.K.
BoE Governor Mervyn King said that when it was time to tighten monetary policy the bank would start by raising the benchmark interest rate from its current record low level of 0.5%.
Elsewhere, the pound was lower against the euro, with EUR/GBP slipping 0.11% to hit 0.8696.
Later Tuesday, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.