The British pound was broadly stable against the rupee and dollar on Thursday ahead of the Bank of England (BoE) interest rate decision later in the day, while the dollar fell. leg as it waited for fresh market catalysts.
The pair traded in a narrow range after a vacation in the United States and as investors watched decisions not only from the BoE, but also from the Swiss and Norwegian central banks.
Sterling GBPINR Last trade was at 106.1739 after having eked out a slight gain in the previous session, while, GBPUSD at 1.27139 almost flat.
The pound found support after data showed UK service inflation was stronger than expected. British inflation returned to its 2% target in May for the first time in nearly three years, data showed on Wednesday, but underlying price pressures remained strong.
Today, the Bank of England decision will weight on the currency. The bank is widely expected to keep rates steady at 5.25% and the focus will be on any guidance on how soon an easing cycle could begin.
Further, The Swiss National Bank (SNB) is scheduled its policy decision, however, expected to trim its key policy rate by 25 basis points for a second straight meeting, with recent strength in the Swiss franc. The last rate was at 1.50%.
USDCHF and benign domestic inflation adding to the case for looser monetary conditions. The Swissie last stood at 0.8840 per dollar, hovering near a three-month high.
British Pound: Technical Outlook
The GBPINR currency pair was a bit shaky yesterday. After hitting a high of 106.0947, it settled at 106.1739, up 0.14%.
Since the beginning of the week, the pair is trading between 106.2550 and 105.7180, forming an indecisive candlestick. Conversely, if the pair breaks the immediate support at 105.7180, pressure may increase to the next support at 105.3220-105.0550.00
On the upside, a break of immediate resistance above 106.2550 will add additional strength to 106.6150-107.40.
Aggregate momentum is expected to be volatile ahead of the BOE’s policy decision.
Happy Trading!
Commodity Samachar
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