GBPUSD Movement
On Friday, the GBP fell 0.19% against the USD and closed at 1.7006. At a newspaper interview, BoE’s Chief Economist, Andy Haldane hinted that the central bank is under no pressure to raise its interest rate anytime soon, on account of slow wage growth and subdued inflation in the nation. Additionally, he also indicated that any interest rate hike in the economy would be gradual and that the BoE would leave the rates below its historical levels. Separately, CBI President, Sir Mike Rake, cited the problems caused by a stronger Pound and urged the BoE to not raise its interest rates until the spring of next year because of the negative impact on exports.
In other economic news, data showed that British public sector net borrowing stood at £11.5 billion in May 2014, lower than market expectations of £12.0 billion and compared to a revised level of £9.0 billion borrowings in the previous month.
In the Asian session, at GMT0300, the pair is trading at 1.7034, with the GBP trading 0.16% higher from Friday’s close.
The pair is expected to find support at 1.7003, and a fall through could take it to the next support level of 1.6973. The pair is expected to find its first resistance at 1.7063, and a rise through could take it to the next resistance level of 1.7093.
Amid a lack of major economic releases from the UK, later today, traders would eye global economic news for further cues in the currency pair.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
