Sterling as investors await Fed announcement
The pound fell against its major rivals in Tuesday’s European session as investors awaited the Federal Reserve’s policy decision for clarity on the rate outlook.
The Fed is expected to raise interest rates by 25 basis points at the end of its two-day meeting on Wednesday.
President Powell should sound hawkish and reiterate that interest rates will continue to rise and stay higher for longer.
Bank of England data showed UK mortgage approvals fell to their lowest level in more than two years in December as the cost of living crisis and rising interest rates wreaking havoc on the real estate market.
The number of mortgages approved for the purchase of a home fell to 35,600 in December from 46,200 in November.
Pulling back from previous highs of 1.2371 against the greenback and 0.8772 against the euro, the pound fell to 6-day lows of 1.2295 and 0.8818, respectively. The currency should find support around 1.21 against the greenback and 0.90 against the euro.
The pound depreciated to a 6-day low of 159.90 against the yen and a 5-day low of 1.1365 against the franc, down from previous highs of 161.19 and 1.1435, respectively. The currency is on track to find support around 157.00 against the yen and 1.11 against the franc.
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Sterling as investors await Fed announcement
