Investing.com - The pound held steady against the U.S. dollar on Thursday, as investors remained cautious ahead of highly anticipated comments by Federal Reserve Chairman Ben Bernanke later in the day.
GBP/USD hit 1.6125 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.6102, dipping 0.03%.
Cable was likely to find support at 1.6062, Wednesday’s low and resistance at 1.6198, the high of May 8.
Markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.
Sentiment remained mildly supported after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism.
The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed.
Investor confidence also gained ground after Italy saw borrowing costs drop sharply at an auction of three- and five-year government bonds, as Italian government financing costs continue to move lower since ECB President Mario Draghi announced the bank’s new government bond buying plan.
Sterling was also steady against the euro with EUR/GBP easing up 0.06%, to hit 0.8013.
Later in the day, the U.S. was to publish government data on producer price inflation, as well as a weekly report on initial jobless claims.
The Federal Reserve was to announce its benchmark interest rate, followed by comments by Chairman Ben Bernanke.
GBP/USD hit 1.6125 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.6102, dipping 0.03%.
Cable was likely to find support at 1.6062, Wednesday’s low and resistance at 1.6198, the high of May 8.
Markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth.
Sentiment remained mildly supported after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism.
The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed.
Investor confidence also gained ground after Italy saw borrowing costs drop sharply at an auction of three- and five-year government bonds, as Italian government financing costs continue to move lower since ECB President Mario Draghi announced the bank’s new government bond buying plan.
Sterling was also steady against the euro with EUR/GBP easing up 0.06%, to hit 0.8013.
Later in the day, the U.S. was to publish government data on producer price inflation, as well as a weekly report on initial jobless claims.
The Federal Reserve was to announce its benchmark interest rate, followed by comments by Chairman Ben Bernanke.