Investing.com – The pounds rally against the U.S. dollar stalled on Tuesday as the pound tested a key resistance at 1.52.
GBP/USD hit 1.5207 during European afternoon trade; the pair's highest since last Friday; the pair subsequently consolidated at 1.5182, gaining 0.3%.
Cable was likely to find support at 1.5089, Monday's low, and short-term resistance at 1.52.
Earlier in the day, the British Chambers of Commerce said the Bank of England will hold its benchmark interest rate steady until at least May 2011 as austerity measures weigh on the economic recovery.
BCC Chief Economist David Kern said “We now have in place a very tough fiscal policy and this makes the risks of a double-dip recession even greater”. He added “It makes it more necessary, policy wise, for the Bank of England to keep interest rates low.”
The Bank of England is due to announce its benchmark interest rate on Thursday.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.03% to hit 0.8285.
Later Tuesday, the U.S. was to produce closely watched report on its services sector which was expected to show smaller than expected growth in June.
GBP/USD hit 1.5207 during European afternoon trade; the pair's highest since last Friday; the pair subsequently consolidated at 1.5182, gaining 0.3%.
Cable was likely to find support at 1.5089, Monday's low, and short-term resistance at 1.52.
Earlier in the day, the British Chambers of Commerce said the Bank of England will hold its benchmark interest rate steady until at least May 2011 as austerity measures weigh on the economic recovery.
BCC Chief Economist David Kern said “We now have in place a very tough fiscal policy and this makes the risks of a double-dip recession even greater”. He added “It makes it more necessary, policy wise, for the Bank of England to keep interest rates low.”
The Bank of England is due to announce its benchmark interest rate on Thursday.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.03% to hit 0.8285.
Later Tuesday, the U.S. was to produce closely watched report on its services sector which was expected to show smaller than expected growth in June.