Breaking News

Forex - GBP/USD slides before BoE decision

ForexJul 04, 2013 04:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

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.

Forex - GBP/USD slides before BoE decision

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email