Forex - GBP/USD slides ahead of BOE meeting minutes

Forex Pros – The pound slipped to a daily low against the U.S. dollar on Wednesday, ahead of the publication of the minutes of the Bank of England’s June 9 policy meeting.

GBP/USD hit 1.6196 during European morning trade, the daily low; the pair subsequently consolidated at 1.6201, slipping 0.27%.

Cable was likely to find support at 1.6166, Tuesday’s low and resistance at 1.6382, the high of June 15.

Policy makers voted 6-3 to keep interest rates on hold at a record low of 0.5% last month, as a flurry of weaker-than-expected economic data overshadowed concerns about above target inflation.

Bank of England policymaker Paul Fisher said on Tuesday that the central bank’s Monetary Policy Committee was determined to bring inflation, currently at 4.5%, back to its 2% target over the next two or three years.

But he added there are risks of both worsening inflation and weak growth leading to deflation.

"The MPC are trying to set the best path back to the inflation target, but even the best path is an extremely uncomfortable one," he said.

Meanwhile, Greece’s parliament supported Prime Minister Papandreou’s new cabinet on Tuesday, wining the support of 155 out of 300 parliament members.

The confidence vote fuelled hopes that Greek lawmakers would support next week’s vote on harsh austerity measures, which include EUR28 billion in spending cuts and new taxes over the next five years.

The pound was also lower against the euro, with EUR/GBP rising 0.13% to hit 0.8884.

Later in the day, the Federal Reserve was to announce its federal funds rate. The announcement will be followed with a press conference by Fed Chairman Ben Bernanke to discuss the bank’s rate statement.

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