Forexpros – The pound edged higher against the U.S. dollar on Thursday, as investors awaited the outcome of a critical policy-setting meeting by the Bank of England, which could see the bank re-launch monetary easing measures.
GBP/USD hit 1.5500 during early European trade, the pair’s highest since Monday; the pair subsequently consolidated at 1.5486, gaining 0.16%.
Cable was likely to find support at 1.5339, Tuesday’s low and an almost eight-and-a-half-month low and resistance at 1.5585, Monday’s high.
The BoE was widely expected to leave rates unchanged at a record low of 0.5%, but there were widespread expectations that the bank would launch a fresh round of monetary stimulus measures to shore up growth in the faltering U.K. economy.
The minutes of the central bank’s September policy meeting indicated that policymakers were leaning towards more monetary easing, amid concerns over weak economic growth.
Also Thursday, the European Central Bank was to announce its benchmark interest rate, amid calls for a rate cut to support growth in the euro zone.
The pound was almost unchanged against the euro, with EUR/GBP inching up 0.01% to hit 0.8635.
Later Thursday, the U.S. was to release its weekly report on initial jobless claims.
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