Forexpros – The pound extended gains against the U.S. dollar on Wednesday, as risk appetite recovered but sterling remained vulnerable after the minutes of the Bank of England’s October meeting showed that policymakers mulled additional easing measures.
GBP/USD hit 1.5818 during European late morning trade, the daily high; the pair subsequently consolidated at 1.5802 gaining 0.57%.
Cable was likely to find support at 1.5631, Tuesday’s low and a four-day low and short-term resistance at 1.5847, Monday’s high and an almost one-month high.
Earlier this month, BoE policymakers voted unanimously to resume quantitative easing, injecting GBP75 billion into the ailing U.K. economy, which has been hit by government spending cuts, a slowdown in global growth and the deepening financial crisis in the euro zone.
The minutes showed that policymakers considered injecting GBP100 billion into the U.K. economy.
Risk appetite was boosted by hopes that this weekend’s European Union summit could result in a breakthrough in dealing with the debt crisis in the euro zone after German Chancellor Angela Merkel said the summit will mark an important step in resolving the region’s debt woes.
Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.11% to hit 0.8761.
Later Wednesday, the U.S. was to publish government data on building permits, housing starts and consumer price inflation.
Forexpros
