Pound Mainly Unchanged After Setting Important Intraday Highs

The UK currency has reached some important intraday maximums against the euro, the Swiss franc and the US dollar today before retreating almost exactly to the day’s opening levels. The pound’s growth was triggered by Ben Bernanke’s testimony before the US Congress.

The Great Britain pound managed to rise to the yearly highs against both the single European currency and the Swiss franc (which is virtually pegged to the former at 1.2 level). The pound also rose to the maximum level since July 4 against its US counterpart and weekly high against the Japanese yen. Although its current daily gains and losses are negligible, the earlier wins can be seen as important milestones for the currency troubled by both domestic recession and a strong financial instability among its main trade partners.

Surprisingly, the pound was moved to its highs in a sharp bullish wave generated by the monetary policy report delivered by Federal Reserve‘s Ben Bernanke to the US Congress. The report does not mention UK economy or currency. Analysts believe that its pessimism has led to a temporary boost of demand for anything non-US and non-euro. Earlier today, the June CPI data from Great Britain moved currency down. They year-over-year inflation came out at 2.4 percent versus the forecast of 2.8 percent.

GBP/USD went up from 1.5634 to 1.5638 as of 18:20 GMT today. EUR/GBP declined from 0.7848 to 0.7846, showing an intraday low at 0.7830 — the minimum level since October 2008. GBP/CHF rose from 1.5297 to 1.5306 with a daily maximum level at 1.5335 — the highest rate since February 2011.

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