The sterling advanced against the US dollar on Wednesday, as investors focus was set on the most significant event for today, the outcome of Federal Reserve Banks monthly meeting.
GBP/USD pulled back from session low at 1.5602 and reached 1.5670 during European afternoon trade. Support was expected at the current session low, while resistance was to be encountered at June 18th high, 1.5722.
Market sentiment was dominated by later FED’s interest rate statement and press conference, which would clarify the central bank’s position on monetary policy.
Meanwhile, the pound was put under pressure earlier today, after the minutes of Bank of England’s June meeting revealed, that three policymakers voted in favor of increased stimulus, including the outgoing BoE Governor, Mervyn King. He and two other policymakers placed their vote for additional 25-billion GBP asset purchases, while the rest voted against such action. The vote to keep the base interest rate unchanged at a record low level of 0.5% was unanimous. Recent economic data from the United Kingdom was mostly positive and in consonance with Bank of Englands quarterly projections, made in May.
The sterling moved higher against the euro, as EUR/GBP pair ticked down by 0.06% to 0.8555.