Investing.com – The pound erased losses against the U.S. dollar on Thursday, rebounding from a two-month low after the Bank of England left interest rates on hold and announced no new monetary easing measures.
GBP/USD rebounded from 1.5914, the pair’s lowest since July 13, to hit 1.6048 during European early afternoon trade, gaining 0.36%.
Cable was likely to find support at 1.5914, the days low and resistance at 1.6166, Tuesday’s high.
The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely expected move. The bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP200 billion.
The minutes of the meeting of the bank’s monetary policy committee will be published on Wednesday, September 21.
The pound weakened earlier as a recent string of negative U.K. data, combined with concerns over the outlook for global growth prompted speculation the BoE may resort to quantitative easing to shore up U.K. growth.
The pound was also higher against the euro, with EUR/GBP shedding 0.56% to hit 0.8766.
Later Thursday, the European Central Bank was to announce its benchmark interest rate. The announcement was to be followed by a closely watched press conference with ECB President Jean-Claude Trichet.
Meanwhile, the U.S. was to publish its weekly report on initial jobless claims, while Federal Reserve Chairman Ben Bernanke was to speak. In addition, U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.
GBP/USD rebounded from 1.5914, the pair’s lowest since July 13, to hit 1.6048 during European early afternoon trade, gaining 0.36%.
Cable was likely to find support at 1.5914, the days low and resistance at 1.6166, Tuesday’s high.
The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely expected move. The bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP200 billion.
The minutes of the meeting of the bank’s monetary policy committee will be published on Wednesday, September 21.
The pound weakened earlier as a recent string of negative U.K. data, combined with concerns over the outlook for global growth prompted speculation the BoE may resort to quantitative easing to shore up U.K. growth.
The pound was also higher against the euro, with EUR/GBP shedding 0.56% to hit 0.8766.
Later Thursday, the European Central Bank was to announce its benchmark interest rate. The announcement was to be followed by a closely watched press conference with ECB President Jean-Claude Trichet.
Meanwhile, the U.S. was to publish its weekly report on initial jobless claims, while Federal Reserve Chairman Ben Bernanke was to speak. In addition, U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.