Investing.com - The pound held steady against the U.S. dollar on Tuesday, as uncertainty over the future of the Federal Reserve's stimulus program persisted, while sentiment weakened after the Organization for Economic Co-operation and Development cut forecasts for global growth.
GBP/USD hit 1.6128 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6113, easing up 0.02%.
Cable was likely to find support at 1.5989, the low of November 14 and resistance at 1.6208, the high of October 28.
The dollar remained under pressure after dovish comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Meanwhile, market sentiment weakened after the OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May, warning that the outlook for emerging markets is deteriorating.
The OEDC revised its forecasts for the U.K. sharply higher, saying the economy will grow by 1.4% this year and 2.4% in 2014, up from 0.8% and 1.5% in May.
"Today's report also highlights the risks that remain to the recovery and urges the U.K. to stick to the government's plan that is growing the economy, lowering the deficit and inflation, and creating jobs," the OEDC said.
Sterling was fractionally lower against the euro with EUR/GBP adding 0.18%, to hit 0.8399.
Also Tuesday, a report showed that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.
GBP/USD hit 1.6128 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6113, easing up 0.02%.
Cable was likely to find support at 1.5989, the low of November 14 and resistance at 1.6208, the high of October 28.
The dollar remained under pressure after dovish comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Meanwhile, market sentiment weakened after the OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May, warning that the outlook for emerging markets is deteriorating.
The OEDC revised its forecasts for the U.K. sharply higher, saying the economy will grow by 1.4% this year and 2.4% in 2014, up from 0.8% and 1.5% in May.
"Today's report also highlights the risks that remain to the recovery and urges the U.K. to stick to the government's plan that is growing the economy, lowering the deficit and inflation, and creating jobs," the OEDC said.
Sterling was fractionally lower against the euro with EUR/GBP adding 0.18%, to hit 0.8399.
Also Tuesday, a report showed that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.