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Forex - Firmer dollar pushes higher vs. pound

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Investing.com - The firmer dollar rose to session highs against the pound in subdued trade on Tuesday, supported by expectations that the Federal Reserve will start to unwind stimulus measures this year.

GBP/USD hit 1.5327 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5328, shedding 0.21%.

Cable was likely to find support at 1.5256, Monday's low and resistance at 1.5439, the high of June 26.

The dollar fell to almost one-month lows against sterling on Monday after data showing that existing home sales fell unexpectedly in June dampened expectations that the Fed would start to taper its USD85 billion-a-month asset purchase program in 2013.

The National Association of Realtors said that existing home sales fell 1.2% to an annual rate of 5.08 million units in June, but still remained close to three-and-a-half year highs.

Trade remained quiet as volumes in foreign exchange markets were lower due to the summer holidays.

Elsewhere, sterling was slightly lower against the euro, with EUR/GBP easing up 0.13% to 0.8569.

Demand for the euro continued to be underpinned after Portugal's Prime Minister Pedro Passos Coelho said Monday the current government will remain in office after political leaders resolved a deadlock that had threatened to derail the country's EUR78 billion bailout program.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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