Forex - GBP/USD steady close to two-month highs
Investing.com - The pound was steady close to two-month highs against the dollar on Wednesday as investor's awaited Federal Reserve minutes later in the trading day that could indicate when the bank will start to unwind its stimulus program.
GBP/USD hit 1.5651 during European morning trade, the session low; the pair subsequently consolidated at 1.5666, dipping 0.01%.
Cable was likely to find support at 1.5608, the low of August 19 and resistance at 1.594, Tuesday's high and a two-month high.
Investors were awaiting release of the minutes from the Fed's July meeting later Wednesday for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
Market sentiment has been hit by mounting expectations that the Fed may start to phase out stimulus measures, known as quantitative easing, as soon as next month.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Elsewhere, sterling was higher against the euro, with EUR/GBP sliding 0.175 to 0.8549.
The U.S. was to release private sector data on new home sales later Wednesday, while the U.K. was to produce data on public sector net borrowing.
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