Forex Pros – The pound slipped to a daily low against the U.S. dollar on Wednesday, ahead of the publication of the minutes of the Bank of England’s May 5 policy meeting.
GBP/USD hit 1.6224 during European morning trade, the daily low; the pair subsequently consolidated at 1.6234, slipping 0.10%.
Cable was likely to find support at 1.6145, the low of May 13 and a six-week low and resistance at 1.6379, the high of May 12.
Policy makers voted 6-3 to keep interest rates on hold at a record low of 0.5% last month as the majority said that data on the economy during the previous month had “probably been to the downside.”
Official data on Tuesday showed that U.K. consumer prices rose to a two-and-a-half year high of 4.5% year-over-year in April.
Following the data, BoE Governor Mervyn King said that trying to bring inflation back to target too quickly would risk harming the economy and undershooting the central bank’s 2% target in the medium term.
The pound was also lower against the euro, with EUR/GBP rising 0.25% to hit 0.8780.
Later in the day, the U.K. was also to publish government data on claimant count change and the country’s unemployment rate, while the Federal Reserve was to publish the minutes of its most recent policy meeting.
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