Forexpros – The pound tumbled to a 15-month low against the U.S. dollar on Thursday after the Bank of England implemented a fresh round of monetary easing measures, amid concerns over weakening economic conditions in the U.K.
GBP/USD hit 1.5272 during European early afternoon trade, the pair’s lowest since July 23, 2010; the pair subsequently consolidated at 1.5287, tumbling 1.07%.
Cable was likely to find support at 1.5123, the low of July 21, 2010 and resistance at 1.5501, the days high.
BoE policymakers voted to increase the bank’s asset purchase program by GBP75 billion, to GBP275 billion to shore up the U.K. economy, which has come under pressure from government spending cuts, a slowdown in global growth and the deepening financial crisis in the euro zone.
The bank left interest rates unchanged at a record low of 0.5%.
The move came after the minutes of the central bank’s September policy meeting indicated that policymakers were leaning towards more monetary easing.
The pound was also sharply lower against the euro, with EUR/GBP jumping 0.75% to hit 0.8698.
Later Thursday, the European Central Bank was to announce the outcome of its policy-setting meeting, while the U.S. was to release its weekly report on initial jobless claims.
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