Investing.com - The pound slid lower against the dollar on Tuesday and the pair looked likely to remain confined in a tight range as uncertainty over the future direction of U.S. monetary policy weighed on market sentiment.
GBP/USD hit 1.5994 during European morning trade, the session low; the pair subsequently consolidated at 1.6004, slipping 0.24%.
Cable was likely to find support at 1.5975 and resistance at 1.6071, Monday’s high.
The dollar remained under pressure after a senior Federal Reserve official defended the central bank’s decision to keep its stimulus program unchanged last week.
New York Federal Reserve President William Dudley said Monday that the pace of the U.S. economic recovery remains insufficient for the bank to start scaling back its stimulus program.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.28% to 0.8433.
The single currency remained supported after data released on Tuesday showed that German business confidence improved less-than-expected in September, but still rose to the highest level since March 2012.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, but came in below expectations for a reading of 108.2.
GBP/USD hit 1.5994 during European morning trade, the session low; the pair subsequently consolidated at 1.6004, slipping 0.24%.
Cable was likely to find support at 1.5975 and resistance at 1.6071, Monday’s high.
The dollar remained under pressure after a senior Federal Reserve official defended the central bank’s decision to keep its stimulus program unchanged last week.
New York Federal Reserve President William Dudley said Monday that the pace of the U.S. economic recovery remains insufficient for the bank to start scaling back its stimulus program.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.28% to 0.8433.
The single currency remained supported after data released on Tuesday showed that German business confidence improved less-than-expected in September, but still rose to the highest level since March 2012.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, but came in below expectations for a reading of 108.2.