Investing.com - The pound slipped lower against the dollar on Wednesday, as a lack of clarity over the future direction of U.S. monetary policy continued to weigh on market sentiment.
GBP/USD hit 1.5980 during European morning trade, the session low; the pair subsequently consolidated at 1.5998, dipping 0.03%.
Cable was likely to find support at 1.5891, the low of September 18 and resistance at 1.6065, the high of September 20.
Investor sentiment remained negative following last week’s unexpected decision by the Federal Reserve to maintain its USD85 billion-a-month asset purchase program.
The Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus. The decision surprised markets, which had been expecting a modest reduction in bond buying.
U.S. data on Tuesday underlined concerns over the outlook for the economic recovery. U.S. house prices were higher in July, but consumer confidence slipped lower in September, amid fears over whether economic momentum can be maintained in the months ahead.
Investors were looking ahead to U.S. data on durable goods orders and new home sales later in the trading day.
Elsewhere, sterling was slightly lower against the euro, with EUR/GBP easing up 0.15% to 0.8430.
The single currency found support after data released on Wednesday showed that German consumer confidence is seen rising to the highest level since June 2007 in October.
The forward looking GfK index of German consumer confidence rose to 7.1, and this month’s reading was revised up from 6.9 to 7.
GBP/USD hit 1.5980 during European morning trade, the session low; the pair subsequently consolidated at 1.5998, dipping 0.03%.
Cable was likely to find support at 1.5891, the low of September 18 and resistance at 1.6065, the high of September 20.
Investor sentiment remained negative following last week’s unexpected decision by the Federal Reserve to maintain its USD85 billion-a-month asset purchase program.
The Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus. The decision surprised markets, which had been expecting a modest reduction in bond buying.
U.S. data on Tuesday underlined concerns over the outlook for the economic recovery. U.S. house prices were higher in July, but consumer confidence slipped lower in September, amid fears over whether economic momentum can be maintained in the months ahead.
Investors were looking ahead to U.S. data on durable goods orders and new home sales later in the trading day.
Elsewhere, sterling was slightly lower against the euro, with EUR/GBP easing up 0.15% to 0.8430.
The single currency found support after data released on Wednesday showed that German consumer confidence is seen rising to the highest level since June 2007 in October.
The forward looking GfK index of German consumer confidence rose to 7.1, and this month’s reading was revised up from 6.9 to 7.