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Forex - GBP/USD dips in quiet trade, central banks eyed

Published 08/28/2012, 04:10 AM
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Investing.com - The pound dipped against the U.S. dollar in quiet trade on Tuesday, as investors remained cautious ahead of a speech by Federal Reserve Chairman Ben Bernanke later in the week, while uncertainty over European Central Bank plans to stem the euro zone debt crisis also weighed.

GBP/USD hit 1.5754 during European morning trade, the pair’s lowest since August 21; the pair subsequently consolidated at 1.5782, slipping 0.07%.

Cable was likely to find support at 1.5701, the low of August 21 and resistance at 1.5827, Monday’s high.

The ECB is expected to announce policy measures to help stabilize the euro zone's sovereign debt markets at it next policy meeting on September 6, but the bank is not expected to begin implementing the measures until late September at the earliest.

Meanwhile, market participants were looking ahead to a speech by Fed Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming, on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

Last week’s minutes of the U.S. central bank’s August meeting indicated that many policymakers may be leaning towards additional quantitative easing.

The pound was slightly lower against the euro, with EUR/GBP easing up 0.13% to 0.7923.

Later in the day, the U.S. was to release a report on consumer confidence, as well as industry data on house price inflation.


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