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Forex - GBP/USD holds steady, close to one-week high

Published 10/05/2012, 10:57 AM
Updated 10/05/2012, 10:59 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound held steady against the U.S. dollar on Friday, trading close to a one-week high as risk sentiment was boosted by upbeat U.S. employment data, while invesors continued to focus on developments in Spain and in Greece.

GBP/USD hit 1.6217 during U.S. morning trade, the pair's highest since September 28; the pair subsequently consolidated at 1.6188, dipping 0.01%.

Cable was likely to find support at 1.6118, the low of September 30 and resistance at 1.6272, the high of September 28.

The Department of Labor said that the U.S. unemployment rate fell unexpectedly to 7.8% in September, the lowest level in four years, from 8.1% the previous month.

Analysts had expected the unemployment rate to tick up to 8.2% in September.

The report also showed that the U.S. economy added 114,000 jobs in September, beating expectations for a 113,000 increase, following a 142,000 rise the previous month.

Meanwhile, markets continued to eye developments in Spain after a European Union official said that a possible bailout is not imminent, as concerns grow over the country’s ability to reach its deficit-reduction targets.

On Thursday, Spanish Economy Minister Luis de Guindos said that no bailout was needed, a few hours after European Central Bank President Mario Draghi reiterated that the bank was ready to start purchasing the debt of troubled euro zone states.

Sterling was lower against the euro with EUR/GBP rising 0.29%, to hit 0.8063.

In addition, Greek officials were expected to meet on Saturday with members of the Troika, led by the European Commission, the European Central Bank and the International Monetary Fun, with hopes of securing a deal on reforms that would allow fresh aid to the country.


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