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Forex - GBP/USD little changed after BoE minutes

Published 09/19/2012, 04:37 AM
Updated 09/19/2012, 04:37 AM
Investing.com - The pound was little changed near a five-month high against the U.S. dollar on Wednesday, after the minutes of the Bank of England’s September meeting showed that policymakers voted unanimously to leave policy unchanged.

GBP/USD hit 1.6271 during European morning trade, the daily high; the pair subsequently consolidated at 1.6254, easing up 0.06%.

Cable was likely to find support at 1.6212, the low of September 17 and resistance at 1.6302, the high of April 30.

BoE policymakers voted 9 to zero in favor of leaving U.K. interest rates unchanged at 0.5% at its meeting this month and also agreed to leave the quantitative easing program unchanged at GBP375 billion.

The minutes revealed that some Monetary Policy Committee members saw stimulus “more likely than not” to be needed in the near-term, while only MPC member saw good case for more quantitative easing, despite the unanimous vote.

Meanwhile, uncertainty over whether Spain is about to ask for more financial aid continued to weigh on sentiment.

Markets were jittery amid reports Spanish Prime Minister Mariano Rajoy remains uncertain about asking for help from the European Central Bank's new bond-purchasing program, which would mean signing up to a permanent bailout fund.

On Tuesday, Spain's Deputy Prime Minister said the country was still considering the conditions of a possible bailout.

Elsewhere, the pound was almost unchanged against the euro with EUR/GBP inching up 0.01%, to hit 0.8033.

Later in the day, the U.S. was to publish official data on building permits and on housing starts, followed by government data on crude oil stockpiles, as well as an industry report on existing home sales.

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