GBP sideways against greenback, AUD, NZD test 1-1/2 month USD highs
Sterling has been trading between $1.608 and $1.612 since December 3, seesawing either side of the $1.61 mark with the ebb and flow of trade and inconclusively testing levels it last saw in October.
A further rise against the greenback could be triggered if the US Federal Reserve unveils further economic stimulus. UK chancellor George Osborne's autumn statement yesterday had little marked affect on the cable.
According to TJ Markets on Tuesday, the pound's strong performance against the greenback indicated there could be more upside to come.
The broker said that with a "strong close above $1.61 ... we could see Sterling strengthen further to $1.63". The pound was last at the $1.63 level in late August 2011.
Western Union Business Solutions said, also on Tuesday: "The US currency has also fallen to six-week lows against the euro amid evidence that US fiscal cliff uncertainties are already damaging the US economy, and that the Federal Reserve may soon have to consider more stimulus."
Elsewhere, the greenback has continued to languish against the interest-rate driven onslaught of the commodity-backed Australian and New Zealand dollars.
At 0905 GMT, the Aussie was buying $1.0472, up 0.01%, while the kiwi was at $0.8295, up 0.05% at a 1-1/2-month high.
Australia's benchmark interest rate is 3%, New Zealand's is 2.5%, and the United States' is 0.25%.
The kiwi is once again testing resistance levels around the $0.827 to $0.829 level, which have been present for at least the past three months.
The Aussie, on the other hand, looks set to test the $1.0485 level, which would put it in the green pastures of 1-1/2-month highs. Story provided by StockMarketWire.com