GBP/USD
The pound advanced for the first time in three days against the dollar as a report showed an index of U.K. retail sales rose to a four-month high in October. Ten-year government bonds fell as the Debt Management Office sold 1.5 billion pounds ($2.4 billion) of three-year gilts. Sterling dropped 0.5 percent in the past two days versus the U.S. currency amid speculation the Bank of England would boost stimulus measures after policy maker Charles Bean said the economy has been bumping along the bottom. A report last week showed U.K. gross domestic product expanded 1 percent in the third quarter, emerging from a double-dip recession. The GDP number was strong enough to rule out further monetary stimulus at the November BOE meeting and some of that is in the price for sterling already, said Valentin Marinov, head of European Group-of-10 foreign-exchange strategy at Citigroup Inc. in London. More resilience from upcoming U.K. data releases would help sterling consolidate. The pound gained 0.3 percent to $1.6081 at 4:19 p.m. London time after falling to $1.5914 on Oct. 23, the lowest level since Sept. 6. Sterling weakened 0.2 percent to 80.66 pence per euro.
The pound advanced for the first time in three days against the dollar as a report showed an index of U.K. retail sales rose to a four-month high in October. Ten-year government bonds fell as the Debt Management Office sold 1.5 billion pounds ($2.4 billion) of three-year gilts. Sterling dropped 0.5 percent in the past two days versus the U.S. currency amid speculation the Bank of England would boost stimulus measures after policy maker Charles Bean said the economy has been bumping along the bottom. A report last week showed U.K. gross domestic product expanded 1 percent in the third quarter, emerging from a double-dip recession. The GDP number was strong enough to rule out further monetary stimulus at the November BOE meeting and some of that is in the price for sterling already, said Valentin Marinov, head of European Group-of-10 foreign-exchange strategy at Citigroup Inc. in London. More resilience from upcoming U.K. data releases would help sterling consolidate. The pound gained 0.3 percent to $1.6081 at 4:19 p.m. London time after falling to $1.5914 on Oct. 23, the lowest level since Sept. 6. Sterling weakened 0.2 percent to 80.66 pence per euro.
Support
|
Resistance
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|
GBP/USD
|
1.59993
|
1.60642
|
1.59771
|
1.61069
|
|
1.59344
|
1.61291
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