Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - GBP/USD slides before BoE decision

Published 07/04/2013, 04:23 AM
Updated 07/04/2013, 04:23 AM
Investing.com - The pound was lower against the dollar on Thursday as investors awaited policy announcements by the Bank of England and the European Central Bank later in the day, as well as Friday’s U.S. nonfarm payrolls report.

GBP/USD hit 1.5238 during European morning trade, the session low; the pair subsequently consolidated at 1.5249, shedding 0.19%.

Cable was likely to find support at 1.5182, the low of July 1 and resistance at 1.5345, the high of June 27.

The BoE was widely expected to keep its benchmark interest rate on hold after its policy meeting later Thursday, the first under the leadership of new Governor Mark Carney.

Data on Wednesday showed that service sector activity in the U.K. expanded at the fastest pace since March 2011 in June, boosting the outlook for second quarter growth and dampening expectations for additional stimulus measures by the central bank.

A report earlier in the week showed that manufacturing activity in the U.K. expanded at the fastest pace in more than two years last month.

The ECB was expected to leave interest rates on hold following its policy meeting and to reiterate that an exit from loose monetary policy remains distant.

Concerns over a political crisis in Portugal eased on Thursday, amid hopes that the government wouldn’t collapse following talks between the coalition partners overnight.

The future of the country's coalition government was thrown into doubt earlier in the week, following the resignation of country’s foreign minister and finance minister in protest over government austerity policies.

Meanwhile, investors were awaiting Friday’s U.S. nonfarm payrolls report for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.

Data on Wednesday showed that the U.S. private sector added 188,000 jobs in June, more than expectations for an increase of 160,000.

Sterling edged lower against the euro, with EUR/GBP edging up 0.08% to 0.8519.

Trade volumes were expected to remain light on Thursday, with markets in the U.S. closed for the Independence Day holiday.




Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.