FOREX – GBP/USD ROUGHLY UNCHANGED AHEAD OF FOMC REPORT
The pound was nearly unchanged against the U.S. dollar on Wednesday, floating close to one-and-a-half week highs as market sentiment enhanced ahead of the Federal Reserve’s upcoming policy report.
GBP/USD hit 1.5198 throughout European morning trade, the session high; the pair therefore consolidated at 1.5194.
Cable was probable to find support at 1.5060, Tuesday’s low and resistance at 1.5269, the high of January 15.
Investors were looking ahead to the effect of Wednesday’s Fed meeting, with the bank anticipated to stick to its promise to be patient on tightening monetary policy.
Markets shrugged off data on Tuesday showing that U.K. gross domestic product prolonged by 0.5% in the final three months of 2014, below forecasts for expansion of 0.6%.
Year-over-year, U.K. economic development grew 2.7 percent in the three months ending December, missing expectations for a gain of 2.8%.
Another report showed that U.K. mortgage approvals fell to a 20-month low of 35,700 last month from November’s total of 36,700.
Sterling was higher against the euro, with EUR/GBP shedding 0.27% to 0.7470.