Investing.com - The pound surged to a 4-day high against the U.S. dollar on Tuesday, amid speculation that the Federal Reserve would keep its target interest rate at a record low.
GBP/USD soared to 1.5575 shortly before the European trading session, the pair's highest rate since last Wednesday; it subsequently hovered around 1.5566, gaining 0.54%. Cable was likely to find support at 1.5344, Friday's low and a 9-month low, and resistance at 1.5688, Thursday's high.
Sterling also rose against the yen, with GBP/JPY climbing 0.33% to reach 141.57.
On Monday, the president of San Francisco's Federal Reserve Bank, Janet Yellen, said the U.S. economy still needed extraordinarily low interest rates as inflation was "undesirably low," Reuters reported.
Some investors expect Fed chief Ben Bernanke to echo this view at appearances before the financial committee of the House of Representatives on Wednesday and the Senate banking panel the following day.
Meanwhile, the Conference Board was set to release its monthly consumer confidence index, a leading indicator of U.S. consumer spending.