On Wednesday, the pound rose very close to the two-month maximum against the US Dollar, as the demand for the American currency went down on the eve of today’s publication of US statistics and the FED’s policy decision.
During the European trade of the morning, the pair GBP/USD reached 1.5406, the peak since March 2, and subsequently consolidated at 1.5387, gaining 0.32%.
The pair is likely to find support at 1.5154, Tuesday’s minimum, and resistance at 1.5460, the maximum of 27 February.
The US Dollar is under pressure due to a lower consumer confidence index from the Conference Board in this month, which is 95.2 against 101.4 – in March. The analysts had expected an index growth to 102.5.
A series of disappointing US economic reports undermined optimism about the recovery potential, prompting speculations that the FED will have the first rise of the rates at the end of the year, instead of the middle, as it is expected.
The April 29, the investors are looking for the preliminary data on US economic growth in the first quarter, as well as a report on pending sale in the real estate market, to get further guidance on the strength of the recovery on the eve of the political outcome of Federal Reserve System meeting.
The UK Nationwide Building Society said earlier that the house price index rose by 1.0% this month, surpassing expectation for a 0.2% rise, after a gain of 0.1% in March. The markets ignored data released on Tuesday, which showed that the country’s GDP expanded by 0.3% in the first three months of 2015, slowing from 0.6% in the last quarter of the previous year, which was the weakest rate of increase since the fourth quarter of 2012.
The investors are also waiting for the outcome of the forthcoming general election in the UK, which will be organized on May 7. That can lead to an unstable coalition government, which can negatively influence the economic growth.
The Sterling Pound also rose against the Euro, EUR/GBP shows now 0.13% less, getting to 0.7149.
Speaking about the two main currencies from the majors, the Euro reached now the highest rates from the last eight weeks against the visibly weakened US Dollar. However the analysts foresee a negative trend for the Euro because of the Greek problem and also the political conflicts with Russia.