The British pound finished the week with a flourish, making gains against other popularly traded currencies such as the euro and the US dollar. At leading trading sites, Forex traders saw the British pound soar, following the news that the Bank of England was to keep the base level interest rate unchanged.
There were a number of factors that contributed to the pound’s high-flying finish to the week’s trading sessions, many of which surrounded the Bank of England’s monetary policy meeting on Thursday. After the meeting, incoming Bank of England Governor, Mark Carney did sterling no harm by saying that the current position of the bank’s policy may be just what the UK economy needs.
To add weight to the Governor’s comments, many Forex traders and market observers across the world also expect to see a rise in producer prices and retail sales next week, a sentiment that has assisted the pound’s strong end to the trading week.
The GBP/USD climbed and climbed during Friday’s trading sessions, finally peaking at the 1.5840 mark, with resistance likely to be encountered at the February 1st high of 1.5878. If you’re a trader of the GBP/USD currency pair, you may want to keep a close eye on events happening during the first couple of days of next week, as there will be certain news releases that will offer inviting trading opportunities if you have your finger on the pulse, ready to pounce!