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Forex - GBP/USD in a tight range ahead of Fed rate statement

Published 09/21/2010, 11:45 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound edged higher against the U.S. dollar on Tuesday, to trade in a tight range ahead of the release of a highly anticipated rate statement by the Federal Reserve's policy setting committee.

GBP/USD retreated from 1.5502, the daily low, to hit 1.5561 during European afternoon trade, gaining 0.09%.

Cable was likely to find support at 1.5347, the low of September 14 and resistance at 1.5685, Monday's high.

Later Tuesday, the Fed's Open Market Committee was to announce its benchmark interest rate. The announcement was to be followed by a statement on U.S. monetary policy and economic outlook.

Earlier in the day, official U.S. data showed that building permits and housing starts rose more-than-expected in August.

In a report, the Census Bureau said the number of housing starts rose to a seasonally adjusted 0.60 million in August, up from a revised 0.54 million in July. Analysts had expected housing starts to rise to 0.55 million in August.

The report also said that the number of building permits issued in August rose to a seasonally adjusted 0.57 million, up from a revised 0.56 million in July. Analysts had expected building permits to remain unchanged in August.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.43% to hit 0.8438.

Also Tuesday, official data showed that U.K. public sector borrowing rose significantly more-than-expected in August.


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