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Forex - Pound pushes higher vs. dollar, Fed minutes ahead

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Investing.com - The pound pushed higher against the dollar on Wednesday as investors locked in profits following the dollar's rally in the previous session and markets looked ahead to the minutes of the Federal Reserve's June meeting later in the day.

GBP/USD hit 1.4923 during European morning trade, the session high; the pair subsequently consolidated at 1.4913, gaining 0.33%.

Cable was likely to find support at 1.4812, Tuesday's low and a three-year low and resistance at 1.4980, Tuesday's high.

Market sentiment was boosted as weak Chinese trade data for June prompted speculation over the possibility of further monetary easing by Beijing.

Official data on Wednesday showed that Chinese exports fell unexpectedly last month, fuelling concerns over a slowdown in global demand. Imports were also lower, indicating that domestic demand was weakening.

The pound dropped to its lowest since June 2010 against the dollar on Tuesday after unexpectedly weak U.K. manufacturing data increased the likelihood of further easing by the Bank of England.

Demand for the dollar continued to be underpinned by expectations that the Federal Reserve will start to unwind stimulus measures as the economy continues to pick up.

The Fed was to release the minutes of its June policy meeting later in the trading day, while a speech by Fed Chairman Ben Bernanke was also in focus.

Sterling was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8594.

The single currency remained under pressure after a senior European Central Bank policymaker said Tuesday that the bank's forward guidance on interest rates extended beyond 12 months.

The comments came after ECB President Mario Draghi said last week that rates would remain at low levels for an "extended" period, amid ongoing weakness in the euro zone economy.

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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.

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