Investing.com - The pound remained moderately higher against the U.S. dollar on Monday, although investors remained cautious ahead of the Federal Reserve's highly anticipated policy meeting scheduled later in the week.
GBP/USD hit 1.6349 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6318, edging up 0.14%.
Cable was likely to find support 1.6198, the low of November 27 and resistance at 1.6418, the high of December 12.
Investors remained cautious ahead of the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out on Tuesday amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
Meanwhile, demand for the pound remained supported after a recent series of robust U.K. economic data cemented the view that the recovery is deepening, fuelling expectations that the Bank of England may raise interest rates before other central banks.
Sterling was lower against the euro, with EUR/GBP adding 0.17% to 0.8446.
Also Monday, the euro zone’s composite output index rose to a three month high of 52.1 in December, from 51.7 in November, indicating that European Central Bank policymakers will not need to step up stimulus measures. It was the fastest increase since April 2011.
Private sector output in the euro zone’s largest economy continued to expand steadily in December, with Germany’s manufacturing index rising to a 30-month high, but the rate of decline in France accelerated, raising concerns that the country could fall back into a recession.
GBP/USD hit 1.6349 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6318, edging up 0.14%.
Cable was likely to find support 1.6198, the low of November 27 and resistance at 1.6418, the high of December 12.
Investors remained cautious ahead of the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out on Tuesday amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
Meanwhile, demand for the pound remained supported after a recent series of robust U.K. economic data cemented the view that the recovery is deepening, fuelling expectations that the Bank of England may raise interest rates before other central banks.
Sterling was lower against the euro, with EUR/GBP adding 0.17% to 0.8446.
Also Monday, the euro zone’s composite output index rose to a three month high of 52.1 in December, from 51.7 in November, indicating that European Central Bank policymakers will not need to step up stimulus measures. It was the fastest increase since April 2011.
Private sector output in the euro zone’s largest economy continued to expand steadily in December, with Germany’s manufacturing index rising to a 30-month high, but the rate of decline in France accelerated, raising concerns that the country could fall back into a recession.