Investing.com – The pound was slightly higher against the U.S. dollar on Monday, trading close to its 15-month high hit on Friday, after a faster-than-expected increase in U.K. producer prices.
GBP/USD hit 1.6404 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6397, easing up 0.08%.
Cable was likely to find support at 1.6261, last Thursday’s low and short-term resistance at 1.6427, Friday’s high and a 15-month high.
The pound’s gains came ahead of U.K. consumer price inflation data due out on Tuesday.
The pound has rallied against the dollar this year, amid expectation that the Bank of England will raise interest rates in the coming months to combat rising inflation.
On Sunday, BoE policy maker Andrew Sentance said he voted for a half-point U.K. interest-rate increase again last week and said that financial markets suggest benchmark borrowing costs could reach 2% next year.
The pound was also up against the euro, with EUR/GBP shedding 0.43% to hit 0.8801.
Also Monday, New York Federal Reserve Bank President William Dudley said the U.S. central bank should not be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy.
GBP/USD hit 1.6404 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6397, easing up 0.08%.
Cable was likely to find support at 1.6261, last Thursday’s low and short-term resistance at 1.6427, Friday’s high and a 15-month high.
The pound’s gains came ahead of U.K. consumer price inflation data due out on Tuesday.
The pound has rallied against the dollar this year, amid expectation that the Bank of England will raise interest rates in the coming months to combat rising inflation.
On Sunday, BoE policy maker Andrew Sentance said he voted for a half-point U.K. interest-rate increase again last week and said that financial markets suggest benchmark borrowing costs could reach 2% next year.
The pound was also up against the euro, with EUR/GBP shedding 0.43% to hit 0.8801.
Also Monday, New York Federal Reserve Bank President William Dudley said the U.S. central bank should not be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy.