Pound Weaker vs. Dollar Ahead of Fed Meeting

The Great Britain pound remained soft against the US dollar as the date of the December monetary policy meeting of the Federal Reserve is nearing and talks about potential stimulus reduction intensify. The currency was higher against other majors, including the euro and the Japanese yen.
The Fed will meet very soon, on December 18 to be specific. Recent positive macroeconomic data and signs of budget agreement added fuel to speculations about quantitative easing tapering on the coming meeting. Such talks boosted the dollar against other major currencies, including the sterling.
Meanwhile, there were concerns that perhaps UK economic recovery as not as strong as was thought. The Conference Board leading index for the Great Britain rose 0.4 percent in October. Not a bad reading by itself, but very weak compared to the September increase of 1.7 percent.
GBP/USD was down from 1.6371 to 1.6348 yesterday and traded near this level as of 2:56 GMT today. GBP/JPY climbed from 167.69 to 168.98 on the previous trading session and advanced to 169.27 on the current session. EUR/GBP was down from 0.8417 to 0.8409 on yesterday’s session and stayed at this price today.

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