Forex Pros – The pound slipped against the U.S. dollar on Thursday, after the Bank of England kept its key interest rate at 0.5%, in a widely expected move amid concerns over the uneven nature of the U.K.’s economic recovery.
GBP/USD eased off 1.6543, the daily high, to hit 1.6498 during European early afternoon trade, up 0.06% on the day.
Cable was likely to find support at 1.6452, Wednesday’s low and resistance at 1.6660, Tuesday’s high.
Earlier in the day, the Markit/CIPS U.K. services purchasing managers’ index slid to 54.3 in April from 57.1 the previous month, staying in positive territory for a fourth straight month, but undershooting the 55.7 forecast.
The report came after data on Wednesday showed that lending to British consumers and homebuyers rose less-than-expected in March and U.K. house prices fell at their fastest pace since November.
The pound was also slightly higher against the euro, with EUR/GBP dipping 0.02% to hit 0.8989.
Later in the day, the European Central Bank was expected to prepare markets for a possible follow-up rate hike in June after its policy setting meeting. Meanwhile, the U.S. was to publish official data on initial jobless claims while Federal Reserve Chairman Ben Bernanke was to speak.
ForexPros.com
