BRUSSELS (Alliance News) - The pound gained ground against other major currencies in the European session on Tuesday, as investor risk appetite and hopes that the nation's economy would improve at a faster rate prompted bets on the currency.
Positive earnings report and optimism over the US economic recovery lifted investor mood in Asia.
The Bank of England's minutes of April monetary policy meeting is due tomorrow. The central bank retained interest rates at record low of 0.50% and asset purchase program at GBP 375 billion at the meeting.
The minutes would shed more light about the timing of the interest rate hike, which is expected to occur in the first half of next year.
The pound climbed to 1.6837 against the dollar, its highest since April 17, when it hit a 4-1/2-year high. The next possible resistance for the pound lies around the 1.70 zone.
The pound appreciated to 1.4888 against the Swiss franc for the first time since February 18. Further rally may see the pound facing resistance at the 1.495 mark.
Having fallen to 172.02 against the yen in early deals, the pound snapped back and hit near a 3-week high of 172.71. If the pound extends gain, it is likely to target resistance around the 173.8 region.
The pound approached 0.8202 against the euro, a level unseen since February 28. On the upside, 0.815 is seen as next probable resistance for the pound.
The US house price index for February and existing home sales for March are set for release in the New York session.
Eurozone flash consumer confidence index for April is slated for release at 10:00 am ET.
