Twinkling Star Sterling on the Upswing
Thursday, 22nd October, 2009, 11:22 GMT
The prospect of higher interest rates was highlighted by BoE Governor, Mervyn King in his speech last night. Policy makers of the BOE resolved not to change their asset purchase program and maintain the record low interest rate of 0.50%. Member of Bank of England, Tucker also conveyed the BoE’s intention to extend its quantitative easing plan.
There was no argument for the increase in the bond purchasing program, which currently stands at GBP 175 bn, initiating a rise in the GBP/USD pair in the currency markets. At 07:00 GMT, the GBP strengthened during U.S and Asian sessions and touched a fresh 6-week high at 1.6640. At 08:02 GMT, the Cable traded at 1.6565 with 1.6520, 1.6425 and 1.6340/60 at the support levels and at resistance levels of 1.6635, 1.6690 and 1.6745.
