Forex Pros – The pound trimmed gains against the U.S. dollar on Monday, retreating from the daily high, as buying driven by speculation over a near-term rate hike by the Bank of England faltered.
GBP/USD retreated from 1.6077, the daily high, to hit 16021 during European morning trade, easing up 0.09%.
Cable was likely to find support at 1.5962, Friday’s low and a two-week low and resistance at 1.6112, Friday’s high.
The BOE left its benchmark interest rate unchanged at a record low of 0.5% last week.
With the bank not due to release details of Thursday’s policy debate until February 23, the market is now lacking clarity on how close the bank really is to raising rates, as inflation pressures mount.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.63% to hit 0.8409.
Earlier in the day, U.K. Business Secretary Vince Cable said he shared the analysis of the doves on the central bank’s Monetary Policy Committee, saying an interest-rate increase was “potentially very difficult.â€
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