Forex Pros – The pound trimmed losses against the U.S. dollar on Thursday, pulling back from the daily low as expectations that the Bank of England will raise interest rates in coming months provided support.
GBP/USD retreated from 1.6144, the daily low, to hit 1.62 during European morning trade, slipping 0.06%.
Cable was likely to find support at 1.6131, Wednesday’s low and resistance at 1.6274, Wednesday’s high and a three-week high.
Earlier in the day, the pound slipped lower as fears over escalating political unrest in Libya dragged on risk appetite.
However, the pound found support after the BOE’s monetary policy meeting minutes on Wednesday suggested that some of the policymakers opposed to a rate hike this month would consider a rise if the economy showed signs of picking up after unexpectedly contracting at the end of 2010.
The minutes showed that BoE chief economist Spencer Dale joined policymakers Martin Weale and Andrew Sentance in voting for a rate hike.
The pound was also down against the euro, with EUR/GBP rising 0.38% to hit 0.8512.
Later in the day, the U.S. was to publish reports on durable goods orders and initial jobless claims, as well as data on new home sales.
ForexPros.com
