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Pound Advances Amid Risk Appetite
(RTTNews) - The pound climbed against its most major counterparts in the European session on Monday, as investors geared up for central bank meetings and inflation reports due this week.
Traders will pay close attention to the Federal Reserve's monetary policy meeting scheduled from 13th June to 14th, with the U.S. central bank expected to pause its recent interest rate increases.
The Fed's accompanying statement as well as key inflation data will be key as investors look for clues about the outlook for rates.
Interest rate announcements from the European Central Bank and the Bank of Japan are scheduled later this week.
Analysts expect the European Central Bank to hike rates by 25 bps on Thursday while the Bank of Japan is likely to maintain its current loose policy settings on Friday.
The pound advanced to near a 5-week high of 1.2596 against the greenback and a 9-1/2-month high of 0.8536 against the euro, off its early lows of 1.2561 and 0.8562, respectively. The pound is seen finding resistance around 1.27 against the greenback and 0.84 against the euro.
The pound remained higher against the franc, at near a 2-week high of 1.1370. On the upside, 1.15 is likely seen as its next resistance level.
In contrast, the pound eased to 175.19 against the yen, from an early multi-year high of 175.76. The currency may locate support around the 169.00 level.
Looking ahead, U.S. monthly budget statement for May will be released in the New York session.
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