Investing.com – The pound rose to hit a 3-day high against the U.S. dollar on Wednesday, after Federal Reserve officials expressed concern over sluggish U.S. growth and continuing low levels of inflation.
GBP/USD hit 1.5700 during early European trade, the pair's highest since September 17; the pair subsequently consolidated at 1.5692, gaining 0.44%.
Cable was likely to find support at 1.5502, Tuesday's low and resistance at 1.5862, the high of August 11.
Following Tuesday's policy meeting, the Fed's rate statement said that the U.S. economic recovery would remain modest in the near term. Officials also indicated that they were ready to implement quantitative easing measures.
"The committee ... is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate," the statement said.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.01% to hit 0.8491.
Later Wednesday, that Bank of England was to publish the minutes of the last meeting of its monetary policy committee.
GBP/USD hit 1.5700 during early European trade, the pair's highest since September 17; the pair subsequently consolidated at 1.5692, gaining 0.44%.
Cable was likely to find support at 1.5502, Tuesday's low and resistance at 1.5862, the high of August 11.
Following Tuesday's policy meeting, the Fed's rate statement said that the U.S. economic recovery would remain modest in the near term. Officials also indicated that they were ready to implement quantitative easing measures.
"The committee ... is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate," the statement said.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.01% to hit 0.8491.
Later Wednesday, that Bank of England was to publish the minutes of the last meeting of its monetary policy committee.