Investing.com – The pound advanced to a fresh daily high against the U.S. dollar on Wednesday, as market focus returned to the prospect of additional monetary easing by the Federal Reserve.
GBP/USD hit 1.5867 during European late afternoon trade, a daily high; the pair subsequently consolidated at 1.5849, jumping 0.90%.
Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.6002, Monday’s high.
Earlier Wednesday, U.K. Chancellor George Osborne unveiled spending cuts worth GBP 80 billion aimed at reducing the country’s record budget deficit. The cuts will result in the loss of around 490,000 public sector jobs over the next four years.
Britain’s budget deficit currently stands at 11% of GDP, the highest in the G7 group of industrialized nations.
Also Wednesday, the Bank of England's Monetary Policy Committee minutes showed a three-way split among members at its most recent meeting in early October. Member Andrew Sentance voted for monetary tightening while Adam Posen voted for more quantitative easing and the rest of the committee maintained their view to leave policy unchanged.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.77% to hit 0.8807.
Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
GBP/USD hit 1.5867 during European late afternoon trade, a daily high; the pair subsequently consolidated at 1.5849, jumping 0.90%.
Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.6002, Monday’s high.
Earlier Wednesday, U.K. Chancellor George Osborne unveiled spending cuts worth GBP 80 billion aimed at reducing the country’s record budget deficit. The cuts will result in the loss of around 490,000 public sector jobs over the next four years.
Britain’s budget deficit currently stands at 11% of GDP, the highest in the G7 group of industrialized nations.
Also Wednesday, the Bank of England's Monetary Policy Committee minutes showed a three-way split among members at its most recent meeting in early October. Member Andrew Sentance voted for monetary tightening while Adam Posen voted for more quantitative easing and the rest of the committee maintained their view to leave policy unchanged.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.77% to hit 0.8807.
Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.