GBP/USD continued yesterday’s slide, holding around $1.9560/70 lows.
The dollar rose toward a six-week
high against the euro before a Federal Reserve meeting today at which
policy makers may leave interest rates on hold and highlight concern about
inflation.
The U.S. currency also climbed to a
six-week high versus the British pound after crude oil fell
to a 13-week low, adding to optimism lower fuel prices will help sustain growth
in the world's biggest economy. The greenback also gained as crude oil fell
below $120 a barrel for the first time since May.
Australia's dollar fell to a
three- month low after the nation's central bank signaled it may cut borrowing
costs. The Reserve Bank of Australia Board said there is ``scope to move
towards a less restrictive stance of monetary policy,'' after keeping interest
rates unchanged at a 12-year high of 7.25%.
EUR/USD fell from $1.5580 and held near $1.5520/30 for some time. Later pressure on rate resumed and rate currently holds lows around $1.5511.
In Europe today PMI
will come from EU countries, including UK.
But the main
focus is on FOMC’s decision on Fed’s rate at 18:15 GMT.
Before FOMC
non-manuf. ISM index will come. Analysts predict index rose to 51,0 points
versus 48,2 points month earlier.