Sterling firms above 1.35 versus dollar

Sterling tilted higher in American trade following a spate of data from the US, and amid a lack thereof from Britain, as the Federal Open Market Committee's policy meeting takes place in Washington. 

As of 04:42 GMT, GBP/USD rose 0.13% to 1.3513 from the opening of 1.3495, with an intraday high at 1.3552, and a low at 1.3469. 

Earlier US data showed housing starts fell in August, although were still above expectations, while building permits rose unexpectedly last month, as import prices accelerated beyond forecasts, and the current trade deficit widened more than expected in the second quarter. 

Markets look forward to policy decisions by Federal Open Market Committee members in this week's periodic meeting, at which policymakers are expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates. 

In his Washington speech yesterday, Carney asserted again that policy tightening could be required in the next few months, noting that the monetary policy could be altered on par with the possibilities of increasing interest rates back to their normal levels, noting that Brexit is expected to leave inflationary side effects. 

Carney said that rate hikes will be limited and gradual, adding that a drop in the immigration rate could raise the inflation rate in the short term, while having little impact in the long term.