Investing.com - The pound eased off a four-month high against the U.S. dollar on Monday, as markets took a breather following Friday’s rally, but expectations for another round of easing from the Federal Reserve continued to support sterling.
GBP/USD hit 1.5990 during European morning trade, the session low; the pair subsequently consolidated at 1.5991, dipping 0.10%.
Cable was likely to find support at 1.5921, Friday’s low and resistance at 1.6033, Friday’s high and a four-month high.
The dollar weakened broadly on Friday after the Department of Labor said the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
The disappointing data increased the chances that the U.S. central bank will implement further quantitative easing measures to strengthen the economic recovery, ahead of its upcoming policy meeting later in the week.
The U.S. jobs data came one day after the European Central Bank unveiled details of its bond purchasing program, aimed at lowering the borrowing costs of peripheral euro zone members.
Sentiment on sterling also remained supported after stronger-than-forecast services and manufacturing data last week indicated that the U.K. economy was not performing as poorly as had been feared.
The pound was higher against the euro, with EUR/GBP slipping 0.19% to 0.7990.
Later in the day, the euro zone was to release a report on investor confidence.
GBP/USD hit 1.5990 during European morning trade, the session low; the pair subsequently consolidated at 1.5991, dipping 0.10%.
Cable was likely to find support at 1.5921, Friday’s low and resistance at 1.6033, Friday’s high and a four-month high.
The dollar weakened broadly on Friday after the Department of Labor said the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
The disappointing data increased the chances that the U.S. central bank will implement further quantitative easing measures to strengthen the economic recovery, ahead of its upcoming policy meeting later in the week.
The U.S. jobs data came one day after the European Central Bank unveiled details of its bond purchasing program, aimed at lowering the borrowing costs of peripheral euro zone members.
Sentiment on sterling also remained supported after stronger-than-forecast services and manufacturing data last week indicated that the U.K. economy was not performing as poorly as had been feared.
The pound was higher against the euro, with EUR/GBP slipping 0.19% to 0.7990.
Later in the day, the euro zone was to release a report on investor confidence.