GBP USD analysis: Pound falls after BoE official’s remarks

ForexNewsNow | Published on September 30, 2010 at 10:48 am

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GBP USD analysis - a heap of poundsNEW YORK (Forex News Now) – Sterling fell to a 4-day low against the dollar on Thursday, after a Bank of England official said the bank would not extend a program to provide extra liquidity for lenders when it expires in 2012.

In late U.S. currency market trading, GBP/USD hit 1.5695, its lowest since Sept. 24. Cable later rose slightly to trade at 1.571, down 0.48 percent on the day.

Paul Fisher, the BoE executive director for markets, made the comments earlier at a meeting with investors. He said central banks shouldn’t become a regular source of funding for the financial sector.

According to GBP USD analysis, cable was likely to touch support around the low of Sept. 21, 1.5504, and encounter immediate resistance around the high of Aug. 11, 1.586.

Sterling’s losses also came after the Institute for Supply Management-Chicago, a trade group, said earlier that its Chicago Business Barometer shot up to 60.4 in September from 56.7 in August. Analysts had expected a decline to 56 percent in September, according to two currency market trading news outlets.

Elsewhere, the pound dropped versus the euro: EUR/GBP traded at 0.8668, up 0.42 percent, according to intraday analysis.

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