Investing.com – The pound continued to increase on Wednesday amid upbeat UK economic data while inflation data caused the Australian dollar to tumble.
GBP/USD was up 0.89%, trading at 1.3203 as of 11:33 AM ET (4:33 PM GMT) as it rallied from data that showed UK economic growth had picked up the third quarter, increasing the chances of a Bank of England rate hike.
Meanwhile the Australian dollar continued to fall to a four and a half month low. AUD/USD was down 0.96% to 0.7700 amid domestic inflation data that lowered expectations of a rate hike. The New Zealand dollar was also down, with NZD/USD decreasing 0.54% to 0.6869 as investors remain uncertain about the incoming Labour government.
Elsewhere the U.S. dollar was down after hope of tax reform was tempered by a continuing feud between Republican Congressman and United States President Donald Trump. Speculation of who the next Federal Reserve chair will be also hit the dollar. Trump is considering five candidates for the position, including current Fed Chair Janet Yellen, whose term expires in February.
The greenback fell against the yen after hitting a three-month high earlier on Wednesday. USD/JPY fell 0.19% to 113.68.
The Euro was up against the dollar, with EUR/USD increasing 0.37% to 1.1803 as companies in Germany were more optimistic about the coming months, with the IFO Business Climate rising in October to 116.7, from 115.3 in September.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slipped 0.29% to 93.56.