Forexpros — The pound erased losses against the U.S. dollar on Wednesday, pulling back from the daily low ahead of the release of U.S. data on private sector job creation.
GBP/USD pulled away from 1.6256, the daily low, to hit 1.6310 during European afternoon trade, easing up 0.06%.
Cable was likely to find support at 1.6211, the low of August 26 and a two-week low and resistance at 1.6422, Tuesday’s high.
The pound weakened against the dollar earlier amid concerns over the outlook for the U.K.’s economic recovery after a report showing that consumer confidence in the U.K. fell to a four-month low in August.
The GfK NOP consumer confidence index fell for the third month in a row to minus 31 from minus 30 in July. Analysts had forecast a drop to minus 32, but the reading was still the lowest since April.
The report said the outlook for the general economic situation in the next 12 months fell to minus 31 from minus 27.
Meanwhile, speculation mounted that the Federal Reserve may act to shore up the faltering U.S. economy after its extended two-day meeting in September.
The minutes of the Fed’s August policy-setting meeting, released Tuesday, showed that some policymakers pushed for more aggressive measures to stimulate growth, including buying more government bonds.
Elsewhere, the pound dipped against the euro, with EUR/GBP inching up 0.02% to hit 0.8861.
Later in the day, payroll processing firm ADP was to release a report on U.S. non-farm payrolls. The U.S. was also to publish official data on manufacturing activity in the Chicago area and factory orders.
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