NEW YORK (Forex News Now) – The pound surged to a 7-week high against the dollar on Wednesday after the U.S. Federal Reserve chairman, Ben Bernanke, said he was confident the economic recovery will have staying power.
During U.S. afternoon trading, GBP/USD struck 1.5491, its highest since February 23. The currency pair later retreated somewhat to trade at 1.5472, up 0.6%.
In a prepared testimony before Congress’ Joint Economic Committee, Bernanke said: “Addressing the country’s fiscal problems will require difficult choices, but postponing them will only make them more difficult.”
FX traders say cable is likely to meet resistance at the high of February 17, 1.5816, and touch support at the low of March 1, 1.4781.
Meanwhile, global forex markets awaited the release on Thursday of a slew of important U.S. data on unemployment claims, foreign purchases of Treasury debt and the manufacturing sector.