Investing.com - The pound rose to a four-month high against the broadly weaker U.S. dollar on Wednesday, as prospects for more monetary easing and a warning from ratings agency Moody’s on the U.S. credit rating depressed the dollar.
GBP/USD hit 1.6096 during European morning trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.6094, gaining 0.15%.
Cable was likely to find support at 1.5973, Tuesday’s low and resistance at 1.6152, the high of May 11.
The greenback has come under broad selling pressure in recent days amid speculation that the U.S. Federal Reserve may implement a third round of quantitative easing after its upcoming policy meeting, which concludes on Thursday.
The greenback extended losses after ratings agency Moody’s warned Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
Market sentiment was supported by expectations that Germany’s constitutional court would approve the country’s participation in the euro zone’s new bailout fund, the European Stability Mechanism, in a ruling due later in the session.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.09% to 0.7992.
The U.K. was to produce government data on claimant count change and the unemployment rate later in the day.
GBP/USD hit 1.6096 during European morning trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.6094, gaining 0.15%.
Cable was likely to find support at 1.5973, Tuesday’s low and resistance at 1.6152, the high of May 11.
The greenback has come under broad selling pressure in recent days amid speculation that the U.S. Federal Reserve may implement a third round of quantitative easing after its upcoming policy meeting, which concludes on Thursday.
The greenback extended losses after ratings agency Moody’s warned Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
Market sentiment was supported by expectations that Germany’s constitutional court would approve the country’s participation in the euro zone’s new bailout fund, the European Stability Mechanism, in a ruling due later in the session.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.09% to 0.7992.
The U.K. was to produce government data on claimant count change and the unemployment rate later in the day.