Forex News: Pound Climbs As BoE Decision Nears

Pound Climbs As BoE Decision Nears

(RTTNews) - The pound spiked higher against its major opponents in the European session on Monday, as investors expect another increase in the key interest rate at the Bank of England's meeting this week.

Economists are expecting another 25 basis point hike on Thursday, which would take the bank rate to 4.5 percent.

The main focus is on the economic projections, which could provide insight into central bank's view on inflation and hints on the rate path.

U.S. inflation data, due on Wednesday, is expected to shed light on the timing of rate cuts.

Markets are pricing in the possibility of a rate cut by the Fed in the second half of this year.

The pound edged up to 0.8714 against the euro and 1.1257 against the franc, off its early lows of 0.8746 and 1.1208, respectively. The currency is seen finding resistance around 0.86 against the euro and 1.14 against the franc.

The pound was up against the yen, at a 6-day high of 171.07. On the upside, 173.00 is likely seen as its next resistance level.

The pound touched 1.2668 against the dollar, it highest level in more than a year. The pound may find resistance around the 1.28 level.

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