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Forex - GBP/USD almost unchanged, Carney speech on tap

Published 06/26/2015, 04:15 AM
Pound holds steady vs. dollar amid Greece worries, Carney remarks in focus
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EUR/GBP
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Investing.com - The pound was almost unchanged against the U.S. dollar on Friday, as investors remained cautious amid ongoing Greek debt negotiations and as markets eyed a speech by Bank of England Governor Mark Carney due later in the day.

GBP/USD hit 1.5720 during European morning trade, the session low; the pair subsequently consolidated at 1.5744.

Cable was likely to find support at 1.5665, the low of June 24 and resistance at 1.5832, the high of June 23.

Markets were jittery as negotiations between Greece and its creditors broke down once again on Thursday.

Time is running out for the Greek government to secure a deal to unlock bailout funds ahead of the looming deadline for a €1.6 billion repayment to the International Monetary Fund on June 30.

If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.

Investors were also looking ahead to comments by BoE Governor Marke Carney later in the day, for further indications on the central bank's next policy moves.

Meanwhile, the dollar remained supported after data on Thursday showed that U.S. personal spending rose by 0.9% in May, above expectations for a gain of 0.7%.

The report also showed personal income rose by 0.5% in May, in line with forecasts and after rising 0.5% in April.

In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 20 increased by 3,000 to 271,000 from the previous week’s total of 268,000. Analysts had expected initial jobless claims to rise by 4,000 to 272,000 last week.

Sterling was lower against the euro, with EUR/GBP edging up 0.15% to 0.7121.

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