Investing.com – The pound extended gains against the U.S. dollar on Tuesday, rising to a fresh daily high as investor attention turned to the outcome of the Federal Reserve’s policy setting meeting on Wednesday.
GBP/USD hit 1.5735 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5731, gaining 0.16%.
Cable was likely to find support at 1.5631, Monday’s low and an eight-month trough and resistance at 1.5755, Monday’s high.
Markets were beginning to focus on the upcoming two-day policy setting meeting of the Federal Reserve’s Open Market Committee, amid speculation that the central bank could implement fresh stimulus to bolster the U.S. economy.
Earlier in the day, official data showed that U.S. building permits rose to a seven-month high of 0.62 million in August, while housing starts fell to 0.57 million, worse than expectations for a decline to 0.59 million.
But the pound’s gains were capped amid speculation that the Bank of England may resort to fresh monetary easing measures to stimulate growth after a recent slew of soft economic data added to concerns about the fragile U.K. economy.
Fears over the exposure of U.K. lenders to euro zone sovereign debt also weighed.
Elsewhere, the pound was lower against the euro, with EUR/GBP easing up 0.03% to hit 0.8716.
Meanwhile, talks between Greek officials and international creditors to discuss how Athens can access the EUR8 billion tranche of aid due next month were to continue later in the day.
GBP/USD hit 1.5735 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5731, gaining 0.16%.
Cable was likely to find support at 1.5631, Monday’s low and an eight-month trough and resistance at 1.5755, Monday’s high.
Markets were beginning to focus on the upcoming two-day policy setting meeting of the Federal Reserve’s Open Market Committee, amid speculation that the central bank could implement fresh stimulus to bolster the U.S. economy.
Earlier in the day, official data showed that U.S. building permits rose to a seven-month high of 0.62 million in August, while housing starts fell to 0.57 million, worse than expectations for a decline to 0.59 million.
But the pound’s gains were capped amid speculation that the Bank of England may resort to fresh monetary easing measures to stimulate growth after a recent slew of soft economic data added to concerns about the fragile U.K. economy.
Fears over the exposure of U.K. lenders to euro zone sovereign debt also weighed.
Elsewhere, the pound was lower against the euro, with EUR/GBP easing up 0.03% to hit 0.8716.
Meanwhile, talks between Greek officials and international creditors to discuss how Athens can access the EUR8 billion tranche of aid due next month were to continue later in the day.