Forexpros – The pound was higher against the U.S. dollar on Wednesday, ahead of the conclusion of the Federal Reserve’s policy meeting, while investors also closely watched developments in Greece after an unexpected call for a vote on the country’s new bailout deal.
GBP/USD hit 1.6047 during U.S morning trade, the session high; the pair subsequently consolidated at 1.6014, gaining 0.41%.
Cable was likely to find support at 1.5889, Tuesday’s low and resistance at 1.6151, the high of October 28 and an almost seven-week high.
The dollar was weighed by speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
In the euro zone, Greek Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package earlier Wednesday and was to meet with French and German leaders to discuss the planned vote later.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.36% to hit 0.8622.
Aldo Wednesday, a report showed that that construction sector activity in the U.K. grew more-than-expected in October, rising to a five-month high.
The Markit/CIPS construction purchasing managers’ index jumped to 53.9 in October from 50.1 the previous month, far outstripping expectations for an increase to 50.2.
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