Investing.com - The pound was almost unchanged against the dollar in quiet trade on Tuesday after the Organization for Economic Co-operation and Development cut forecasts for global growth and uncertainty over how soon the Federal Reserve will start to taper stimulus measures continued.
GBP/USD edged down 0.05% to 1.6100, from Monday’s close of 1.6108 during European afternoon trade.
Cable was likely to find support at 1.6047, the low of November 15 and resistance at 1.6147, Monday’s high and a three-week high.
Market sentiment was hit after the OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May, warning that the outlook for emerging markets is deteriorating.
Sterling found support after the OEDC revised its forecasts for the U.K. sharply higher, saying the economy will grow by 1.4% this year and 2.4% in 2014, up from 0.8% and 1.5% in May.
"Today's report also highlights the risks that remain to the recovery and urges the U.K. to stick to the government's plan that is growing the economy, lowering the deficit and inflation, and creating jobs," OEDC said.
The dollar remained under pressure after dovish comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Sterling was steady against the euro, with EUR/GBP edging up 0.02% to 0.8385.
The single currency shrugged off a report showing that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.
GBP/USD edged down 0.05% to 1.6100, from Monday’s close of 1.6108 during European afternoon trade.
Cable was likely to find support at 1.6047, the low of November 15 and resistance at 1.6147, Monday’s high and a three-week high.
Market sentiment was hit after the OECD said the global economy will grow by 2.7% this year and 3.6% in 2014, down from forecasts of 3.1% and 4% in May, warning that the outlook for emerging markets is deteriorating.
Sterling found support after the OEDC revised its forecasts for the U.K. sharply higher, saying the economy will grow by 1.4% this year and 2.4% in 2014, up from 0.8% and 1.5% in May.
"Today's report also highlights the risks that remain to the recovery and urges the U.K. to stick to the government's plan that is growing the economy, lowering the deficit and inflation, and creating jobs," OEDC said.
The dollar remained under pressure after dovish comments by Federal Reserve Chairwoman nominee Janet Yellen last week were seen as cementing the view that the bank will continue its USD85 billion-a-month asset purchase program well into the beginning of next year.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Sterling was steady against the euro, with EUR/GBP edging up 0.02% to 0.8385.
The single currency shrugged off a report showing that the ZEW index of German economic sentiment rose to a four-year high this month.
The ZEW index of German economic sentiment rose to 54.6 in November from October’s reading of 52.8. Economists had expected the index improve to 54.0.