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by ForexNewsNow Team on July 26, 2010

Sterling extends rally against dollar, hitting 3-month high

forex trading currency trading online forex GBPNEW YORK (Forex News Now) – The pound climbed against the dollar on Monday, hitting a 3-month high, as global equities advanced and FX traders’ risk appetite improved on upbeat U.S. housing data.

In European afternoon currency trading, GBP/USD hit 1.552, cable’s highest since April 15. The pair later retreated somewhat to traded at 1.5492, up 0.41 percent on the day.

Official data showed earlier that new U.S. home sales rose sharply in June compared with the previous month, and at a faster rate than expected.

According to the Commerce Department, sales rose to an annual rate of 330,000 in June from a revised 267,000 in May. Analysts had expected June’s figure to come in at 317,000, two global forex news outlets reported.

According to forex analysis, GBP/USD was likely to touch support around Friday’s low, 1.5255, and encounter immediate resistance around the high of Feb. 23, 1.5575.

Meanwhile, the Ernst & Young ITEM Club chairman, Peter Spencer has warned that tensions in the Bank of England’s Monetary Policy Committee will be “excruciating” for the next 18 months as strong economic data raises the pressure on policy-makers to raise interest rates, the Telegraph reported on Monday.

Also Monday, sterling fell versus the yen: GBP/JPY traded at 134.81, down 0.06 percent.

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