Investing.com - The pound was almost unchanged against the U.S. dollar on Friday, hovering close to five month lows as Friday's comments by Federal Reserve Chair Janet Yellen continued to support demand for the greenback.
GBP/USD was at 1.6578 during European morning trade, not far from the five month session low of 1.6538.
Cable was likely to find support at 1.6466 and resistance at 1.6597, Friday's high.
The dollar strengthened broadly after Fed Chair Janet Yellen said on Friday that the U.S. economy is recovering and added the labor market is improving as well.
Ms. Yellen was speaking at the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming.
Sterling was higher against the euro, with EUR/GBP retreating 0.41% to 0.7959.
Also Monday, the German research institute Ifo said its Business Climate Index fell to a more than one-year low of 106.3 this month, below forecasts for 107.0 and down from a reading of 108.0 in July.
The weak data dampened optimism over the health of the euro zone’s largest economy.
The single currency also came under pressure after European Central Bank President Mario Draghi told the Jackson Hole gathering on Friday that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
Later in the day, the U.S. was to release data on new home sales.