GBP / USD sets new lows in a month below 1.3630, in the Fed’s preview

• The pound among the weakest in the G10 on Wednesday.
• GBP / USD sets new lows in a month, ahead of the Fed.

The GBP / USD is trading at the 1.3630 zone, the lowest level in a month. The price maintains a bearish tone and looks at 1.3600, where the August lows are also. The pound is among the weakest on Wednesday, the day of the Fed.

The UK currency is under pressure in the market and is trading at a month low against the dollar and in weeks against the euro. There is no particular factor behind this. EUR / GBP is testing levels above 0.8600, which is a key technical level and if sustained, it could enable more rises in the coming days.

The dollar presents mixed results in the preview of key events. The DXY rises 0.05% and remains sideways around 93.20. Treasury yields are also moving without clear direction.

Focus on the Fed, tomorrow the BoE

The economic calendar shows the August US existing home sales report ahead, following better-than-expected data for home starts and building permits reported Tuesday.

The event of the day will be the decision of the Federal Reserve, at 18:00 GMT. The US central bank will keep interest rates unchanged. The spotlight is on what the Fed says about the purchasing program, projections from FOMC members, and Jerome Powell’s press conference. These events are expected to generate volatility in the markets.

Thursday will be the turn of Bank of england (BoE). Changes in the course of monetary policy are not expected there either. It is estimated that there will be a dissenting vote of Saunders calling for a cut in the shopping program.

Technical levels