Forex Pros – The pound surged to a two-day high against the U.S. dollar on Monday, as strong U.K. data bolstered expectations that the Bank of England will raise interest rates faster than the U.S. Federal Reserve.
GBP/USD hit 1.6185 during early European trade, the pair’s highest since Thursday; the pair subsequently consolidated at 1.617, gaining 0.38%.
Cable was likely to find support at 1.6036, Friday’s low and resistance at 1.6277, last Thursday’s high and a 12-week high.
Purchasing managers’ surveys last week showed Britain’s services and construction industries grew in January, while manufacturing expanded at a record pace.
Meanwhile, inflation reached 3.7% in December; equal to April’s reading and rising at the fastest pace since November 2008.
The pound was also higher against the euro, with EUR/GBP slipping 0.15% to hit 0.8419.
Later in the day, the U.S. was to release a government report on consumer credit.
ForexPros.com
