IN: The British Pound Gains Ground Against the Dollar
In European afternoon trade the pound was doing well reaching 1.6262 against the dollar for a daily high before consolidating to 1.6259 and squeezing a 0.6 percent gain. The pound managed to conquer some ground after the publication of UK Consumer Price Index (CPI) sales data and ahead of tomorrow’s BoE minutes release.
The upward push on the exchange rate is weak as market participants remain concerned over Spain’s financial crisis and wary of a later-in-the-day release of US economic data.
Reuters reported that Spanish minister Mariano Rajoy remains unsure on whether to ask for help from the European Central Bank (ECB) and make use of the new bond-purchasing program. In order to qualify, Spain will have to adhere to a number of requirements and sign up to a permanent bailout fund.
According to TD Securities Analysts, no large changes are expected in the American trading session. "Above 1.6302 there is scope for a move to extend to the 2009-2012 resistance line at 1.6505", opined analyst Karen Jones.
