SENSEX NIFTY
Jul 11, 2013, 02.02 PM IST | Source: Investing.com

Forex - GBP/USD off highs, remains stronger

Forex - GBP/USD off highs, remains stronger

Investing.com - The pound came off highs against the dollar on Thursday, but remained above the 1.5000 level after Federal Reserve Chairman Ben Bernanke indicated that the bank may not be as close to tapering its asset purchase program as previously believed.

GBP/USD pulled back from 1.5191, the pair's highest since July 4, to hit 1.5085 during European morning trade, up 0.48% for the day.

Cable was likely to find support at 1.4996, the session low and resistance at 1.5191, the session high.

The dollar fell against all the major currencies after Bernanke said in a speech that the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

The comments came after the minutes of the central bank's June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while many others believe the labor market still remains too weak.

The dollar had rallied in recent weeks after Bernanke said following the bank's June 19 meeting that the Fed could begin to pull back bond buying by the end of 2013 if the economy continued to pick up.

The pound fell below the 1.500 level against the dollar last Thursday after the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.'s economic recovery.

Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.16% to 0.8653.

The U.S. was to release the weekly report on initial jobless claims later in the trading day.




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