Investing.com - The pound rose to 27-month highs against the dollar on Thursday after the Bank of England’s financial stability report said the economic recovery in the U.K. has strengthened.
GBP/USD was up 0.35% to 1.6345, the highest level since August 2011, up from 1.6285 on Wednesday.
Cable was likely to find support at 1.6200 and resistance at 1.6450.
The BoE said that risks to financial stability appeared lower as a result of the stronger outlook for growth. However, the bank warned that a sharp rise in interest rates, especially if not associated with rising incomes, could pose a threat to stability.
The pound received an additional boost after the BoE said it was going to scale back the Funding for Lending Scheme, which was launched last year to boost mortgage lending, amid concerns over a property bubble.
The bank said house-price inflation has gathered momentum and warned that risks to financial stability may build if there is a rapid increase in house prices and consumer indebtedness.
The Funding for Lending Scheme will be redirected towards businesses from January.
Trade volumes were thin on Thursday with markets in the U.S. to remain closed for the Thanksgiving Day holiday on Thursday.
Sterling rose to session highs against the euro, with EUR/GBP down 0.22% to 0.8317.
In the euro zone, data released on Thursday showed that the number of unemployed people in Germany rose by 10,000 in November, compared to expectations for an increase of 1,000. The country’s unemployment rate was unchanged at 6.9%.
GBP/USD was up 0.35% to 1.6345, the highest level since August 2011, up from 1.6285 on Wednesday.
Cable was likely to find support at 1.6200 and resistance at 1.6450.
The BoE said that risks to financial stability appeared lower as a result of the stronger outlook for growth. However, the bank warned that a sharp rise in interest rates, especially if not associated with rising incomes, could pose a threat to stability.
The pound received an additional boost after the BoE said it was going to scale back the Funding for Lending Scheme, which was launched last year to boost mortgage lending, amid concerns over a property bubble.
The bank said house-price inflation has gathered momentum and warned that risks to financial stability may build if there is a rapid increase in house prices and consumer indebtedness.
The Funding for Lending Scheme will be redirected towards businesses from January.
Trade volumes were thin on Thursday with markets in the U.S. to remain closed for the Thanksgiving Day holiday on Thursday.
Sterling rose to session highs against the euro, with EUR/GBP down 0.22% to 0.8317.
In the euro zone, data released on Thursday showed that the number of unemployed people in Germany rose by 10,000 in November, compared to expectations for an increase of 1,000. The country’s unemployment rate was unchanged at 6.9%.