Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - GBP/USD holds at 3-week highs ahead of BoE decision

Published 10/12/2015, 09:40
Updated 10/12/2015, 09:58
© Reuters.  Pound remains unchanged vs. dollar despite U.K. trade data
GBP/USD
-
EUR/GBP
-

Investing.com - The pound was almost unchanged at three-week highs against the U.S. dollar on Thursday, even after data showed that he U.K. trade deficit widened much more than expected in October, as investors awaited the Bank of England's policy decision later in the day.

GBP/USD hit 1.5196 during European morning trade, the pair's highest since November 20; the pair subsequently consolidated at 1.5178.

Cable was likely to find support at 1.5075, the low of December 4 and resistance at 1.5248, the high of November 18.

The U.K. Office for National Statistics reported that the country's trade deficit widened to £11.83 billion in October from £8.8 billion the previous month. Economists had expected the trade deficit to widen to £9.7 billion in October.

Later Thursday, the BoE was expected to leave its monetary policy unchanged.

Meanwhile, sentiment on the greenback remained fragile as investors became increasingly cautious ahead of the Fed's highly-anticipated policy meeting next week.

The U.S. dollar rallied to 11-/12 year highs against other major currencies earlier in the week after Friday's strong U.S. employment data added to expectations that the Fed will hike interest rates for the first time since 2006.

Sterling was higher against the euro, with EUR/GBP declining 0.50% to 0.7226.

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.