Forex: GBP/USD jumps to 1.6450

Tue, Nov 3 2009, 19:19 GMT
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FXstreet.com (Córdoba) – Dollar weakened across the board in the last hours on rising stocks. Also commodities are extending its rally. GBP/USD jumped above 1.6400 to 1.6452, posting a fresh intra-day high. The pair has been able to erase previous losses. Cable fell during the European session to 1.6260 posting the lowest price in a week.

Currently the pair trades at 1.6432/35, 0.20% above today’s opening price. GBP/USD has risen more than 130 pips since the beginning of the American session.

Michael J. Malpede, analyst at Easy Forex affirms: ”The BOE meet on November 5th and are expected to decide whether to extend the current size of the asset purchase plan of £175 bln. Based on the UK GDP report it may be difficult for the BOE to refrain from adding additional stimulus. Recent GBP price action has found that the GBP benefits on BOE decision to hold the current level of asset purchases and weakens if the BOE elects to expand quantitative ease. A Reuter’s poll of 62 economists shows that 19 expect no change in BOE asset purchases, 22 look for an increase of £25 bln and 21 look for 50 bln. The impact of the BOE decision may be limited as focus returns to risk appetite.”

GBP/USD

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