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Forex - Pound advances to 2-week high against dollar

Published 03/19/2012, 08:48 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound rose to a two-week high against the U.S. dollar on Monday, as investors looked ahead to the U.K.’s annual budget as well as inflation data and Bank of England minutes later in the week.

GBP/USD hit 1.5891 during European afternoon trade, the pair’s highest since March 2; the pair subsequently consolidated at 1.5881, gaining 0.24%.

Cable was likely to find support at 1.5820, the session low and resistance at 1.5928, the high of February 8 and a three-month high.

Sterling was supported by mounting expectations that Wednesday’s annual budget would contain business-friendly tax adjustments, which would bolster economic growth.

The U.K. was also to release official data on consumer inflation, one day ahead of the minutes from the BoE’s March policy meeting on Wednesday, which could indicate if policymakers are considering another round of economic stimulus.

Meanwhile, sentiment on the dollar remained firm after the Federal Reserve upgraded its view on the U.S. economy last week, causing investors to trims back expectations for a fresh round of easing by the central bank.

The pound was also higher against the euro, with EUR/GBP shedding 0.34% to hit 0.8287.

Market participants were awaiting the outcome of the final stage of Greece's debt restructuring deal, ahead of a two-stage auction to determine the payout on Greek credit default swaps.


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