Investing.com - The pound softened against the dollar on Wednesday after the Federal Reserve said it was making no changes to its ultra-loose monetary policies, including its USD85 billion in monthly bond purchases.
In U.S. trading on Wednesday, GBP/USD was trading at 1.6008, down 0.26%, up from a session low of 1.5999 and off from a high of 1.6078.
Cable was likely to find support at 1.5894, the low from Oct. 16, and resistance at 1.6208, Monday's high.
The Federal Reserve on Wednesday left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place.
The Fed said the economy was showing signs of improvement though it still faced enough headwinds to prompt monetary authorities to hold off on tapering its asset purchases, namely fiscal uncertainties that continue to drag on recovery.
Stimulus tools such as asset purchases aim to drive recovery by keeping long-term interest rates lower, weakening the dollar in the process.
"Economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated," the Fed said in a statement.
"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth."
Stimulus tools such as monthly asset purchases tend to weaken the dollar, though Wednesday's announcement came as little surprise to investors who set their sights with caution on Friday's U.S. October jobs report.
Earlier Wednesday, payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
The pound, meanwhile, was flat against the euro and up against the yen, with EUR/GBP up 0.01% at 0.8566 and GBP/JPY up 0.23% at 157.93.
In U.S. trading on Wednesday, GBP/USD was trading at 1.6008, down 0.26%, up from a session low of 1.5999 and off from a high of 1.6078.
Cable was likely to find support at 1.5894, the low from Oct. 16, and resistance at 1.6208, Monday's high.
The Federal Reserve on Wednesday left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place.
The Fed said the economy was showing signs of improvement though it still faced enough headwinds to prompt monetary authorities to hold off on tapering its asset purchases, namely fiscal uncertainties that continue to drag on recovery.
Stimulus tools such as asset purchases aim to drive recovery by keeping long-term interest rates lower, weakening the dollar in the process.
"Economic activity has continued to expand at a moderate pace. Indicators of labor market conditions have shown some further improvement, but the unemployment rate remains elevated," the Fed said in a statement.
"Available data suggest that household spending and business fixed investment advanced, while the recovery in the housing sector slowed somewhat in recent months. Fiscal policy is restraining economic growth."
Stimulus tools such as monthly asset purchases tend to weaken the dollar, though Wednesday's announcement came as little surprise to investors who set their sights with caution on Friday's U.S. October jobs report.
Earlier Wednesday, payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.
A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.
The pound, meanwhile, was flat against the euro and up against the yen, with EUR/GBP up 0.01% at 0.8566 and GBP/JPY up 0.23% at 157.93.