GBP/USD at 1.5540 Before BOE Meets

The pound traded near its highest level in almost three months against the dollar on speculation the Bank of England will refrain from expanding monetary stimulus at a policy meeting today.

The euro held the biggest gain in three weeks versus the greenback from yesterday before data forecast to show German exports rebounded in March, easing concern Europe’s largest economy will slip into recession. New Zealand’s currency, nicknamed the kiwi, rallied from a five-week low after data showed the nation’s jobless rate fell while employment grew.

“There have been the views that the BOE will introduce further stimulus earlier, so the lack of it seems to have prompted unwinding of short positions on the pound,” said Kengo Suzuki, the chief foreign-exchange strategist at Mizuho Securities Co. in Tokyo, referring to bearish bets on the currency. “If the BOE puts off additional easing today, that trend may continue for a little bit longer.”


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