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Forex - Stronger pound hits 5-month high vs. dollar

Published 04/19/2012, 04:32 AM
GBP/USD
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EUR/GBP
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Investing.com - The broadly stronger pound advanced to a five-month high against the U.S. dollar on Thursday, boosted by diminished expectations for a fresh round of easing by the Bank of England.

GBP/USD hit 1.6077 during European morning trade, the pair’s highest since November 14; the pair subsequently consolidated at 1.6059, gaining 0.24%.

Cable was likely to find support at 1.6013, the session low and resistance at 1.6165, the high of October 31.

Investors pared back expectations for additional monetary stimulus measures from the BoE after Wednesday’s minutes of the bank’s April meeting showed that just one policymaker voted in favor of additional easing this month.

In March, two of the nine member monetary policy committee favored additional stimulus measures.

Additionally, official data showing that the number of people claiming unemployment benefits in the U.K. rose less-than-expected last month, while the unemployment rate ticked down unexpectedly, fuelling hopes that the economic recovery is gaining traction.

Meanwhile, investors remained jittery ahead of a critical auction of Spanish government debt later in the day, amid growing fears over the health of the country’s finances.

The pound was trading within striking distance of a 19-month high against the euro, with EUR/GBP dipping 0.02% to hit 0.8188.

Also Thursday, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.


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