Investing.com - The pound rose to two-month highs against the dollar in subdued trade on Tuesday as uncertainty over the Federal Reserve’s plan to phase out stimulus persisted.
GBP/USD hit 1.5680 during European afternoon trade, the highest since June 18; the pair subsequently consolidated at 1.5665, gaining 0.10%.
Cable was likely to find support at 1.5608, Monday’s low and resistance at 1.5722, the high of June 18.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to taper its USD85 billion-a-month stimulus program.
Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Demand for the pound continued to be underpinned after better-than-expected data last week on U.K. jobless claims and retail sales boosted the outlook for the economic recovery.
Elsewhere, sterling was lower against the euro, with EUR/GBP advancing 0.32% to 0.8546.
In the euro zone, official data on Tuesday showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis.
Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.
GBP/USD hit 1.5680 during European afternoon trade, the highest since June 18; the pair subsequently consolidated at 1.5665, gaining 0.10%.
Cable was likely to find support at 1.5608, Monday’s low and resistance at 1.5722, the high of June 18.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to taper its USD85 billion-a-month stimulus program.
Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Demand for the pound continued to be underpinned after better-than-expected data last week on U.K. jobless claims and retail sales boosted the outlook for the economic recovery.
Elsewhere, sterling was lower against the euro, with EUR/GBP advancing 0.32% to 0.8546.
In the euro zone, official data on Tuesday showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis.
Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.