Investing.com – The pound erased early losses against the U.S. dollar on Wednesday, rising to hit a daily high as uncertainty ahead of a critical announcement by the Federal Reserve weighed on the dollar.
GBP/USD clawed up from 1.6005, the daily low to hit 1.6049 during late Asian trade, gaining 0.05%.
Cable was likely to find support at 1.5960, Tuesday’s low and resistance at 1.6106, the high of October 15.
The dollars earlier gains came after partial results and exit polls from the U.S. mid-term elections indicated that Republicans swept to power in the House of Representatives and ate into the Democratic majority in the Senate.
The political deadlock was likely to result in checks on government spending and regulation and was being viewed as beneficial to the energy and auto sector as well as financial services firms.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.03% to hit 0.8749.
Later in the day, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.
GBP/USD clawed up from 1.6005, the daily low to hit 1.6049 during late Asian trade, gaining 0.05%.
Cable was likely to find support at 1.5960, Tuesday’s low and resistance at 1.6106, the high of October 15.
The dollars earlier gains came after partial results and exit polls from the U.S. mid-term elections indicated that Republicans swept to power in the House of Representatives and ate into the Democratic majority in the Senate.
The political deadlock was likely to result in checks on government spending and regulation and was being viewed as beneficial to the energy and auto sector as well as financial services firms.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.03% to hit 0.8749.
Later in the day, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.