The GBP / USD rose to a maximum of 10 months

Saturday, November 6, 2010

Forex Pros - Sterling extended early gains against U.S. dollar Thursday, rising to a new maximum of 10 months after the Bank of England monetary policy remained stable and the U.S. claims for unemployment benefits rose more than expected.The GBP / USD was at 1.6277 by afternoon European trade, the highest since Jan. 22, the pair subsequently consolidated 1.6268, jumping 1.17%. The cable was likely to find support at 1.6005, resistance to low and Wednesday at 1.6456, the highest in the 19 January.Earlier in the day, the Bank of England left its benchmark interest rate unchanged at 0.50% for the 11th successive month in November. The bank also made no change to its asset purchase plan.The minutes of the meeting of the monetary policy committee of the bank will be published on Wednesday, November 17. Also Wednesday, the U.S. Department of Labor said the number of individuals who filed the initial application for unemployment benefits rose last week to a seasonally adjusted 457K, after falling a revised 437K the prior week.Analysts had expected initial jobless claims remained unchanged from last week. The pound also rose against the euro, with EUR / GBP losing 0.30% to 0.8765.On Wednesday night, the Federal Reserve announced it would buy $ 600 billion in U.S. government bonds over the next eight months in an effort to launch the "disappointingly slow" economic recovery.