Thursday, February 14, 2013

Forex - GBP/USD near 6-month lows on U.K. outlook

Investing.com - The pound was trading close to six-month lows against the dollar on Thursday, as concerns over the outlook for the U.K. economy curbed investor demand for sterling.

GBP/USD hit 1.5492 during European morning trade, the pair’s lowest since August 2; the pair subsequently consolidated at 1.5519, shedding 0.14%.

Cable was likely to find support at 1.5412, the low of July 13 and resistance at 1.5541, the session high.

The pound remained under pressure after the Bank of England cut its outlook for growth on Wednesday and said inflation would remain above target until early 2016.

In its quarterly inflation report the bank said inflation is likely to be at around 2.3% in two years’ time, sharply higher than the 1.8% forecast in November, before falling back below the bank’s 2% target in the first quarter of 2016.

The central bank said the economy will experience a "slow but sustained recovery" over the next three years and added that it stood ready to provide more stimulus as needed.

http://www.investing.com/news/forex-news/forex---gbp-usd-near-6-month-lows-on-u.k.-outlook-244278

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