Investing.com - The pound edged up to seven-week highs against the dollar on Thursday, as gains in global equities markets following aggressive monetary easing steps by the Bank of Japan underpinned demand for sterling.
GBP/USD hit 1.5370 during European morning trade, the pair’s highest since February 20; the pair subsequently consolidated at 1.5362, gaining 0.25%.
Cable was likely to find support at 1.5291, Wednesday’s low and resistance at 1.5450, the high of February 20.
Risk appetite has been supported since the BoJ unveiled a massive monetary stimulus program last week, aimed at beating deflation in the world’s third largest economy.
Investor sentiment was also boosted after data on Thursday showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery one day after trade data indicated that domestic demand remains strong.
Meanwhile, Wednesday’s minutes of the Federal Reserve’s most recent meeting showed that policymakers are still divided over about when to end its bond buying program.
The Fed minutes, which were inadvertently released ahead of schedule, showed that that a few policymakers saw quantitative easing tapering around midyear, while several others believed it would be appropriate to slow later in the year and to stop by the end of the year.
The impact of the minutes was muted as the meeting was held before nonfarm payrolls data showed that the U.S. economy added far fewer than expected jobs in March.
The pound was slightly lower against the euro, with EUR/GBP slipping 0.09% to 0.8517.
The U.S. was to publish the weekly government report on initial jobless claims and data on import prices later in the day.
GBP/USD hit 1.5370 during European morning trade, the pair’s highest since February 20; the pair subsequently consolidated at 1.5362, gaining 0.25%.
Cable was likely to find support at 1.5291, Wednesday’s low and resistance at 1.5450, the high of February 20.
Risk appetite has been supported since the BoJ unveiled a massive monetary stimulus program last week, aimed at beating deflation in the world’s third largest economy.
Investor sentiment was also boosted after data on Thursday showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery one day after trade data indicated that domestic demand remains strong.
Meanwhile, Wednesday’s minutes of the Federal Reserve’s most recent meeting showed that policymakers are still divided over about when to end its bond buying program.
The Fed minutes, which were inadvertently released ahead of schedule, showed that that a few policymakers saw quantitative easing tapering around midyear, while several others believed it would be appropriate to slow later in the year and to stop by the end of the year.
The impact of the minutes was muted as the meeting was held before nonfarm payrolls data showed that the U.S. economy added far fewer than expected jobs in March.
The pound was slightly lower against the euro, with EUR/GBP slipping 0.09% to 0.8517.
The U.S. was to publish the weekly government report on initial jobless claims and data on import prices later in the day.