Forex Pros – The pound dipped against the U.S. dollar on Thursday, but remained close to a 13-month high, as expectations that the Bank of England would hike interest rates ahead of the U.S. Federal Reserve supported the currency.
GBP/USD hit 1.6305 during European morning trade, the daily low; the pair subsequently consolidated at 1.6308, dipping 0.09%.
Cable was likely to find support at 1.6213, Wednesday’s low and short-term resistance at 1.6343, Wednesday’s high and a 13-month high.
The pound has rallied this year as indications from Bank of England policymakers that inflation is likely to remain elevated in 2011 underlined expectations for a rate hike by the bank in the coming months.
Elsewhere, on Wednesday, the Federal Reserve’s Beige Book said that the labor market improved throughout the U.S. early this year, driven by increasing retail sales and “solid growth” in manufacturing.
Meanwhile, a report by payroll processing firm ADP said U.S. private sector employment rose by 217,000 in February, better than the expected 170,000 gain.
Meanwhile, the pound was slightly higher against the euro, with EUR/GBP slipping 0.07% to hit 0.8485.
Later in the day, the U.K. was to publish data on service sector growth. The U.S. was also to publish a report on its services sector as well as a weekly government report on initial jobless claims.
ForexPros.com
