Forexpros - The pound rallied to a five-month high against the U.S.
dollar on Friday, as the announcement of fresh easing measures by the
Federal Reserve boosted demand for risk-related assets.
GBP/USD hit 1.6250 during European afternoon trade, the pair's highest since April 30; the pair subsequently consolidated at 1.6242, climbing 0.54%.
Cable was likely to find support at 1.6144, the day's low and resistance at 1.6302, the high of April 30.
The Fed announced on Thursday that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
"We want to see lower unemployment. We want to see a stronger economy that can cause the improvement to be sustained," Fed Chairman Ben Bernanke said following the central bank's two-day policy meeting.
The Fed also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.
Elsewhere, the pound was higher against the pound with EUR/GBP rising 0.40%, to hit 0.8075.
Also Friday, official data showed that consumer price inflation in the euro zone remained unchanged at an annualized rate of 2.6% in August, in line with expectations.
A separate report showed that employment change in the single currency bloc was flat in the second quarter, following a 0.2% decline in the previous quarter and compared with expectations for a 0.2 fall.
In addition, euro zone finance ministers were to hold informal talks in Cyprus about whether Spain should ask for financial support after the announcement of the European Central Bank's new bond-buying programme brought Madrid's borrowing costs sharply lower.
Later in the day, the U.S. was to publish official reports on consumer price inflation, retail sales and business inventories. The University of Michigan was also to produce preliminary reports on consumer sentiment and inflation expectations.
GBP/USD hit 1.6250 during European afternoon trade, the pair's highest since April 30; the pair subsequently consolidated at 1.6242, climbing 0.54%.
Cable was likely to find support at 1.6144, the day's low and resistance at 1.6302, the high of April 30.
The Fed announced on Thursday that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
"We want to see lower unemployment. We want to see a stronger economy that can cause the improvement to be sustained," Fed Chairman Ben Bernanke said following the central bank's two-day policy meeting.
The Fed also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.
Elsewhere, the pound was higher against the pound with EUR/GBP rising 0.40%, to hit 0.8075.
Also Friday, official data showed that consumer price inflation in the euro zone remained unchanged at an annualized rate of 2.6% in August, in line with expectations.
A separate report showed that employment change in the single currency bloc was flat in the second quarter, following a 0.2% decline in the previous quarter and compared with expectations for a 0.2 fall.
In addition, euro zone finance ministers were to hold informal talks in Cyprus about whether Spain should ask for financial support after the announcement of the European Central Bank's new bond-buying programme brought Madrid's borrowing costs sharply lower.
Later in the day, the U.S. was to publish official reports on consumer price inflation, retail sales and business inventories. The University of Michigan was also to produce preliminary reports on consumer sentiment and inflation expectations.
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