Forexpros – The pound pushed higher against the U.S. dollar on Tuesday, ahead of testimony from Bank of England policymakers, amid speculation that the bank may implement another round of monetary easing as soon as next month.
GBP/USD hit 1.5623 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.5611, gaining 0.24%.
Cable was likely to find support at 1.5537, Monday’s low and more than one-week low and resistance at 1.5733, the high of June 21.
Senior BoE policymakers, including Governor Mervyn King, were to testify on inflation and the economic outlook before Parliament’s Treasury Committee later in the day.
Expectations for another round of quantitative easing have been growing since last week’s minutes of the central bank’s June meeting showed a narrow split against additional stimulus measures.
On Monday, BoE policymaker David Miles said that a “substantial” amount of monetary stimulus was needed to shore-up growth in Britain’s “stalled” economy.
Meanwhile, investor sentiment remained fragile amid doubts over whether an upcoming European Union summit will result in fresh measures to tackle the region’s debt crisis.
The pound was slightly higher against the euro, with EUR/GBP slipping 0.14% to hit 0.8016.
Also Tuesday, the U.K. was to produce official data on public sector net borrowing, while the U.S. was to release industry data on house price inflation and a report on consumer confidence.
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