The pound climbed 0.37 percent against the U.S. dollar Wednesday, hitting its strongest level in a year against the euro a sharp fall in UK jobless rate to the lowest level in almost five years and closer to the Bank of England's target of 7%, firmed up the picture of further economic recovery. The strong jobs figures pushed up the value of the pound, where unemployment has fallen to a more than four-year low of 7.1 percent, taking the jobless rate to just 0.1 of a percentage above the level where the BoE said it would begin considering raising interest rates. The EURGBP pair extended losses for a second day Wednesday, last trading at 0.81880 after opening at 0.82279. Also supporting the sentiment, the International Monetary Fund has upgraded its growth predictions for the UK economy, bringing its forecast closer in line with those of other economists. The IMF said UK will grow 2.4 percent, compared with 1.9 percent in the last revision. Among other releases, Bank of England minutes for policy meeting held this month showed a unanimous vote to holding both interest rate and stimulus. Monetary Policy Committee members voted to keep both interest rate at its current low level of 0.50% and amount of asset purchases at 375 billion pounds. The minutes showed MPC members see no need to raise interest rate soon even as the economy has showed remarkable signs of progress and jobless rate will fall to the 7 percent threshold earlier than expected. Pound so far gained 0.39 percent against the dollar, pushing the GBPUSD to trade higher at $1.65452 after starting the session at $1.64742 . The pair so far recorded a session high at $1.64500 and session low at $1.65488 . The pair has to confirm the upside move by breaching 1.6515. Cable was likely to found support at 1.63066 and resistance at 1.66024. Yen Down as BOJ Stick to Easing The U.S. Dollar moved higher against the Yen Wednesday after an early release showed the Bank of Japan (BoJ) announced that it will be keeping its monetary policy unchanged. While, demand for the greenback continues to be supported by expectations that the Federal Reserve will resume its plan to reduce its Quantitative Easing program at next week's policy meeting. Yen fell 0.05 percent against the dollar, to trade at ¥104.348, after hitting a session low of ¥103.962. The USDJPY pair opened at ¥104.257. Aussie Up After Strong Inflation Data The Aussie surged higher after an inflation report dampened expectations for the Reserve Bank of Australia to make a cut to interest rates. Inflation in Australia rose o 2.7% in the fourth quarter of 2013, beating economist forecasts for a figure of 2.4%. The AUDUSD pair pared last session's losses on Wednesday, edging up by 0.76 percent against the dollar to trade at $0.88739 . The pair so far recorded an intraday high of $0.8869 . Loonie Rises Ahead Of Boc Meeting The Canadian dollar strengthened against major peers as investors ahead of the Bank of Canada's interest rate decision and press conference which are due later in the day. The U.S. Dollar fell against the loonie for a second session, last trading at 1.09578 after opening at 1.09631.
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