A mixed set of economic data kept the US dollar treading water. Consumer spending in August came in above expectations according to latest figures. The Department of Commerce reported a 0.4 percent lift in spending between July and August.
GBP/USD fell by more than one percent as traders retreated to safer plays including the US dollar and Japanese yen. Selling began in the Asian session and sent cable abruptly into the support area at 1.5350.
GBP/USD was testing the middle of the 1.55 price range as traders became more confident that the Fed would not decide to lift interest rates at this meeting. GBP/JPY also moved higher to 187 as sterling extending a two week long rally.