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Forex - GBP/USD edges higher but gains seen capped

Published 02/26/2016, 04:23 AM
© Reuters.  Pound gains some ground against softer dollar
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EUR/GBP
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Investing.com - The pound edged higher against the U.S. dollar on Friday, as sentiment on the greenback weakened ahead of a string of key U.S. economic reports and as concerns over a potential British exit from the European Union slightly eased.

GBP/USD hit 1.4020 during European morning trade, the pair’s highest since Wednesday; the pair subsequently consolidated at 1.4014, rising 0.37%.

Cable was likely to find support at 1.3875, Wednesday’s low and a seven-year low and resistance at 1.4155, Tuesday’s high.

Investors were eyeing the release of U.S. economic growth, personal spending and consumer sentiment data, due later Friday, for further indications on the strength of the economy and potential U.S. rate hikes this year.

The dollar had found support after data showed that U.S. durable goods orders rose far more-than-expected last month.

Meanwhile, the pound’s gains were expected to remain limited as concerns over a potential Brexit still lingered.

Several senior members of Prime Minister David Cameron’s Conservative party, including London Mayor Boris Johnson, said this week that they will be backing the campaign to leave the EU, in a blow to his plans to remain in the bloc.

Earlier Friday, Bank of England Governor Mark Carney said that global growth was a "serial disappointment" and that monetary stimulus did have value as it supports economic activity.

Carney was speaking at the G20 Conference, in Shanghai.

Sterling was also higher against the euro, with EUR/GBP retreating 0.51% to 0.7855.

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