Forexpros – The pound pushed higher against the U.S. dollar on Thursday, tracking gains in the euro after better-than-expected data on German business confidence, but sterling’s gains remained limited after Wednesday’s dovish Bank of England minutes.
GBP/USD hit 1.5709 during European morning trade, the session high; the pair subsequently consolidated at 1.5701, gaining 0.20%.
Cable was likely to find support at 1.5649, the session low and resistance at 1.5769, the high of February 14.
The pound moved higher in tandem with the euro after German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 109.6 in February from a reading of 108.3 the previous month, surpassing expectations for an increase to 108.8.
The data fuelled hopes that the euro zone’s largest economy was weathering the impact of the debt crisis in the region and may avoid slipping into a recession.
But sterling remained under pressure after the minutes of the BoE’s February meeting showed that two policymakers favored a larger increase in the bank’s asset purchase program than the bank implemented this month, fuelling speculation that the central bank will opt for more easing later in the year.
The pound was lower against the euro, with EUR/GBP rising 0.32% to hit 0.8482.
Later in the day, the U.S. was to produce government data on initial jobless claims.
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