GBP/USD Fundamental Outlook at 1500 GMT (EST + 0500)

 @ibtimes on February 02 2010 4:44 PM

The British pound moved higher vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5995 level and was supported around the $1.5900 figure level.  The big question facing traders is whether Bank of England's Monetary Policy Committee will scale back, pause, or extend its bond purchase program when its monetary policy announcement is made on Thursday.  The opposition Tory party, appearing poised to assume the top government slot in H1 2010, today reported it would keep the BoE's inflation target at 2.0% if they assume power and control of the government.  Many data were released in the U.K. yesterday. First, January manufacturing PMI improved to 56.7 from 54.6, a fifteen-year high.  Second, December mortgage approvals decreased to 59,020.  Third, net lending to individuals rose by ?1.2 billion in December.  Fourth, Hometrack January house prices were up +0.1%.  Cable bids are cited around the US$ 1.5720 level.  The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ?0.8760 level and was supported around the ?0.8710 level.

Join the Discussion