Pound declines ahead of Yellen statement; U.K. stocks see second day of gains

Cable declines Wednesday ahead of Fed Chair Janet Yellen's statement later in the day. Meanwhile, U.K. benchmark FTSE 100 rise as corporate earnings come in, with Barclays and British American Tobacco moving higher after their trading updates.

The pound was changing hands at $1.5590, versus $1.5610 late Tuesday in New York.

After the close of European trade Wednesday, the U.S. Federal Reserve will release its statement on monetary policy, which will be closely watched for any clues as to when the central bank may begin to lift interest rates.

Chairwoman Janet Yellen will not hold a press conference after the release and there will be no updated economic projections.

The FTSE 100 climbed 0.77% to 6,595.75. Tuesday marked the first win in six sessions for the index.

Barclays rose 1.7%, with investors taking in their stride the bank’s decision to slash its dividend target in a move to retain capital. Profit for the second quarter increased to £1.15 billion from £161 million in 2014.

Shares of British American Tobacco PLC were higher 2.8% following the company’s report of a higher first-half profit of £2.65 billion, supported by investments that helped offset currency losses.

Sky PLC added 1.6% as the broadcaster reported yearly profit that more than doubled to £1.96 billion pounds compared to 2014. Operating profit before exceptional items — a key metric of business performance — rose 18% to £1.4 billion.

Elsewhere in Europe, German DAX added 0.36% to 11,214.30. France's CAC 40 was higher 0.71% to 5,012.42.