News Column

Pound Advances Ahead Of BOE Minutes

June 18, 2014



BRUSSELS (Alliance News) - The British currency firmed against the other major currencies in the early European session on Wednesday as traders await the release of Bank of England's minutes of the latest monetary policy meeting in June due shortly.

At the meeting, the central bank had opted to leave its interest rate and the size of its asset purchase program unchanged notwithstanding evidence suggesting strengthening of economic momentum. The minutes are likely to give hints about timing on interest rate hike, which is presently at 0.5%

The pound hit a 2-day high of 0.7976 against the euro and a 5-1/2-month high of 173.64 against the yen, compared to yesterday's closing values of 0.7983 and 173.20, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.80 against the euro and 174.54 against the yen.

The pound that ended yesterday's deals at 1.5248 versus the franc rose to a 2-day high of 1.5274. Against the dollar, the pound ticked up to 1.6985. The next possible upside target for the pound is seen around 1.53 against the franc and 1.70 against the greenback.

Looking ahead, Swiss ZEW economic sentiment index for June is due in the European session.

At 2:00 pm ET, the Federal Reserve will announce its decision on monetary policy. The Fed is expected to hold rates at 0.25%, while tapering monthly bond buying program by USD10 billion to USD35 billion.



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Source: Alliance News


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