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Forex - GBP/USD higher as U.K. budget eyed

Published 03/21/2012, 05:22 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was higher against the U.S. dollar on Wednesday, ahead of the U.K.’s annual budget statement and the minutes of the Bank of England’s policy meeting from earlier this month.

GBP/USD hit 1.5923 during European morning trade, the pair’s highest since March 2; the pair subsequently consolidated at 1.5905, gaining 0.27%.

Cable was likely to find support at 1.5830, Tuesday’s low and resistance at 1.5965, the high of March 2.

The pound was bolstered by speculation that the budget will contain measures to support economic growth in the U.K.

Meanwhile, the BoE minutes would be scrutinized for indications that policymakers are considering another round of monetary easing or concerns about inflation given high oil prices.

Official data on Tuesday showed that the annual rate of consumer price inflation in the U.K. eased to the lowest since November 2010 in February, dampening expectations for a fresh round of easing measures.
 
The pound was slightly lower against the euro, with EUR/GBP easing up 0.11% to hit 0.8345.
 
Later Wednesday, the U.S. was to release industry data on existing home sales.
 

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