Investing.com – The pound was down against the U.S. dollar on Wednesday, falling to a daily low, following a report in the Wall Street Journal that the Federal Reserve was likely to unveil plans for gradual Treasury purchases at its policy meeting next week.
GBP/USD hit 1.5759 during early European trade, a daily low; the pair subsequently consolidated at 1.5791, shedding 0.31%.
Cable was likely to find support at 1.5650, the low of October 22 and resistance at 1.6002, the high of October 18.
Late Tuesday, a report in the Wall Street Journal said that the Fed is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, in contrast to purchases worth almost USD 2 trillion the bank made during the financial crisis.
The report said that the bank favored an approach that allowed them to adjust policy as the economic recovery unfolded, with the ability to make more purchases in the future if necessary. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.06% to hit 0.8740.
Later in the day, the U.S. was to publish data on durable goods orders and new home sales.
GBP/USD hit 1.5759 during early European trade, a daily low; the pair subsequently consolidated at 1.5791, shedding 0.31%.
Cable was likely to find support at 1.5650, the low of October 22 and resistance at 1.6002, the high of October 18.
Late Tuesday, a report in the Wall Street Journal said that the Fed is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, in contrast to purchases worth almost USD 2 trillion the bank made during the financial crisis.
The report said that the bank favored an approach that allowed them to adjust policy as the economic recovery unfolded, with the ability to make more purchases in the future if necessary. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.06% to hit 0.8740.
Later in the day, the U.S. was to publish data on durable goods orders and new home sales.