Investing.com - The pound was steady close to six-week highs against the U.S. dollar on Thursday, after the U.S. Federal Reserve announced a fresh round of monetary easing measures.
GBP/USD hit 1.6111 during European afternoon trade, the session low; the pair subsequently consolidated at 1.6142, dipping 0.03%.
Cable was likely to find support at 1.6068, the low of December 11 and resistance at 1.6170, Wednesday’s high and a six-week high.
The U.S. central bank said Wednesday that it would continue to purchase USD85 billion a month of government bonds and mortgage based securities in order to shore up the economic recovery.
The Fed also said that interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.
Investor focus shifted back to negotiations to avoid the U.S. fiscal cliff following the central bank announcement, amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
In the U.K., a report by the Confederation of British Industry showed that factory orders increased more than expected in November, while the three month outlook also improved.
Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.01% to 0.8096.
The single currency remained supported after euro zone finance ministers agreed a deal on rules for supervising the bloc’s banks ahead of a European Union summit later in the day.
Ministers also released EUR49.1 billion of financial aid for Greece, after the country completed a scheme to buy back its debt from private investors this week.
Later in the trading day, the U.S. was to produce official data on retail sales and producer price inflation, as well as the weekly government report on initial jobless claims.
GBP/USD hit 1.6111 during European afternoon trade, the session low; the pair subsequently consolidated at 1.6142, dipping 0.03%.
Cable was likely to find support at 1.6068, the low of December 11 and resistance at 1.6170, Wednesday’s high and a six-week high.
The U.S. central bank said Wednesday that it would continue to purchase USD85 billion a month of government bonds and mortgage based securities in order to shore up the economic recovery.
The Fed also said that interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.
Investor focus shifted back to negotiations to avoid the U.S. fiscal cliff following the central bank announcement, amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
In the U.K., a report by the Confederation of British Industry showed that factory orders increased more than expected in November, while the three month outlook also improved.
Sterling was almost unchanged against the euro, with EUR/GBP inching up 0.01% to 0.8096.
The single currency remained supported after euro zone finance ministers agreed a deal on rules for supervising the bloc’s banks ahead of a European Union summit later in the day.
Ministers also released EUR49.1 billion of financial aid for Greece, after the country completed a scheme to buy back its debt from private investors this week.
Later in the trading day, the U.S. was to produce official data on retail sales and producer price inflation, as well as the weekly government report on initial jobless claims.