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Forex - GBP/USD remains moderately higher ahead of Fed statement

Published 10/30/2013, 11:11 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound remained slightly higher against the U.S. dollar on Wednesday, as markets awaited the release of the Federal Reserve's monthly policy statement later in the day.

GBP/USD hit 1.6078 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6063, adding 0.10%.

Cable was likely to find support at 1.5941, the low of October 17 and resistance at 1.6144, Tuesday's high.

Data released on Wednesday showing that the U.S. private sector added fewer jobs than expected in October reinforced the view that the U.S. central bank will keep its USD85 billion-a-month asset purchase program in place after its monthly meeting later in the day.

Payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.

The previous month’s figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.

A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.

Many investors expect the Fed to maintain its stimulus program well into the first quarter of next year, in order to safeguard the fragile U.S. economic recovery in the wake of this month’s 16-day government shutdown.

Sterling was steady against the euro with EUR/GBP inching up 0.05%, to hit 0.8570.

In the euro zone, data released on Wednesday showed that Spain’s economy emerged from a recession in the third quarter, for the first time since 2011. Spain’s economy expanded 0.1% in the three months to September, following a 0.1% contraction in the previous quarter.

A separate report showed that the annual rate of consumer inflation in Spain fell by 0.1% in the third quarter.


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