NEW YORK (Forex News Now) – Sterling hit a fresh daily high against the dollar on Wednesday, as traders awaited a key interest rates decision by the Bank of England and a rally in U.K. stocks.
In U.S. afternoon currency trading, GBP/USD reached the daily high of 1.5219, close to the 2-month high of July 2, 1.5228. The currency pair later retreated slightly to trade at 1.52, up 0.33 percent on the day.
On Thursday, the Bank of England is expected to hold its benchmark interest rate steady at a historic low 0.5 percent, as it mulls the impact of the government’s austerity measures on the fragile U.K. economic recovery.
But in a significant FX news event, a single member of the central bank’s Monetary Policy Committee voted to hike the Official Bank Rate to 0.75 percent, minutes from the panel’s most recent meeting revealed.
According to forex analysis, GBP/USD is likely to touch immediate support around the daily low, 1.5081, and encounter resistance around the high of May 3, 1.5316.
Meanwhile, sterling climbed versus the yen: GBP/JPY traded at 132.9, up 0.21 percent on the day.