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Forex - GBP/USD hovers close to 1-week high, eyes on Fed

Published 08/30/2012, 10:18 AM
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Investing.com - The pound was trading close to a one-week high against the U.S. dollar on Thursday, as markets continued to focus on future central bank policy moves ahead of a highly anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday.

GBP/USD hit 1.5875 during U.S. morning trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5853, adding 0.13%.

Cable was likely to find support at 1.5764, the low of August 22 and resistance at 1.5931, the high of May 17.

Investors remained cautious ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.

The greenback was little changed after official data earlier showed that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000.

A separate report showed that personal income in the U.S. rose by 0.3% in July, matching forecasts, after rising by a revised 0.3% in June. Personal spending rose 0.4%, in line with expectations after a flat reading in June.

In the U.K., official data showed that net lending to individuals increased by GBP0.9 billion in July, below expectations for a GBP1.1 billion increase.

A separate report showed that U.K. mortgage approvals rose to 47,000 in July, in line with expectations, coming off June’s 18-month low of 44,000.

Elsewhere, the pound was steady against the euro with EUR/GBP easing up 0.05%, to hit 0.7918.

In the euro zone, Italy saw borrowing costs ease at an auction of five and 10-year bonds earlier, reflecting expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.


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