Forex Pros – The pound erased losses against the U.S. dollar on Thursday, as the Bank of England looked almost certain to leave interest rates at a record low later in the day, due to uncertainty about the strength of Britain’s fragile recovery.
GBP/USD retreated from 1.6264, the daily low to hit 1.6336 during European morning trade, easing up 0.02%.
Cable was likely to find support at 1.6090, Tuesday’s low and resistance at 1.6363, Wednesday’s high and a two-week high.
Data on Wednesday showed industrial output unexpectedly suffered its biggest fall since August 2009 in February. In contrast, data the day before showed the services sector picked up in March to grow at its fastest pace in more than a year.
The central banks policymakers said last month that the recent rise in oil prices, fanned by tension in the Middle East and North Africa, had increased adverse risks to both inflation and growth.
Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.29% to hit 0.8749.
Later in the day, the Bank of England was to announce its official cash rate. Also Thursday, the European Central Bank was to announce its minimum bid rate while the U.S. was to publish a weekly report on initial jobless claims.
ForexPros.com
