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Forex - GBP/USD edges higher in quiet trade

Published 10/13/2014, 04:32 AM
Pound gains some ground vs. dollar although growth worries persist
GBP/USD
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EUR/GBP
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Investing.com - The pound edged higher against the U.S. dollar in quiet trade on Monday, with U.S. markets to remain closed for Columbus Day and although global growth concerns persisted.

GBP/USD hit 1.6126 during European morning trade, the session high; the pair subsequently consolidated at 1.6089, adding 0.09%.

Cable was likely to find support at 1.6006, Friday's low and resistance at 1.6227, the high of October 9.

Market sentiment was hit last week after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 and warned that global growth may never reach its pre-crisis levels ever again.

Meanwhile, the dollar struggled to regain traction after the minutes of the U.S. Federal Reserve's September meeting prompted investors to push back the expected timing of a Fed rate hike.

On Friday, Fed Vice Chairman Stanley Fischer said weaker-than-expected global growth could prompt it to slow the pace of eventual interest rate hikes.

Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.29% to 0.7880.

Sentiment on the euro remained vulnerable amid fears that Germany, the euro zone’s largest economy is being dragged into a recession after recent data indicated unexpected weakness in manufacturing and exports.

Data released last Thursday showed that German exports fell 5.8% in August, and this followed weak industrial output figures on Tuesday.

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