Investing.com – The pound erased gains against the U.S. dollar on Monday, as expectations that the European Central Bank will raise interest rates as early as next month eclipsed speculation of near-term rate hike by the Bank of England.
GBP/USD retreated from 1.6340, the pair’s highest since Wednesday, to hit 1.6264 during European afternoon trade, dipping 0.03%.
Cable was likely to find support at 1.6213, last Wednesday’s low and resistance at 1.6343, last Wednesday’s high and a 13-month high.
On Thursday, ECB President Jean-Claude Trichet said the bank may increase interest rates in April to curb inflation pressures.
Meanwhile, markets have pared back expectations for a rate hike by the BoE amid concerns about the vulnerability of the U.K. economy to tighter monetary policy.
The pound was also down against the euro, with EUR/GBP rising 0.18% to hit 0.8612.
Later Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart was due to speak in Washington, while the president of the Federal Reserve Bank of Chicago, Charles Evans, was also to deliver a speech.
GBP/USD retreated from 1.6340, the pair’s highest since Wednesday, to hit 1.6264 during European afternoon trade, dipping 0.03%.
Cable was likely to find support at 1.6213, last Wednesday’s low and resistance at 1.6343, last Wednesday’s high and a 13-month high.
On Thursday, ECB President Jean-Claude Trichet said the bank may increase interest rates in April to curb inflation pressures.
Meanwhile, markets have pared back expectations for a rate hike by the BoE amid concerns about the vulnerability of the U.K. economy to tighter monetary policy.
The pound was also down against the euro, with EUR/GBP rising 0.18% to hit 0.8612.
Later Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart was due to speak in Washington, while the president of the Federal Reserve Bank of Chicago, Charles Evans, was also to deliver a speech.