Investing.com – The pound erased early losses and surged to a fresh 7-week high against the U.S. dollar on Monday, as concerns over the slowing pace of U.S. growth weighed on the dollar.
GBP/USD hit 1.5852 during European morning trade, the pair's highest since August 11; the pair subsequently consolidated at 1.5847, gaining 0.14%.
Cable was likely to find support at 1.5641, Friday's low and resistance at 1.5907, the high of August 10.
Earlier Monday, data from the Confederation of British Industry financial services survey said that activity levels in the U.K. financial services sector grew at their fastest rate since before the financial crisis in the third quarter. However the rate of growth remained below expectations.
Commenting on the report, Ian McCafferty, CBI chief economic adviser, said, "Activity picked up in the financial services sector in the last three months at a pace not seen since before the credit crunch. Although this growth was slower than hoped, it did help firms' profitability to rise further".
The pound was also up against the euro, with EUR/GBP shedding 0.24% to hit 0.8504.
Also Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.
GBP/USD hit 1.5852 during European morning trade, the pair's highest since August 11; the pair subsequently consolidated at 1.5847, gaining 0.14%.
Cable was likely to find support at 1.5641, Friday's low and resistance at 1.5907, the high of August 10.
Earlier Monday, data from the Confederation of British Industry financial services survey said that activity levels in the U.K. financial services sector grew at their fastest rate since before the financial crisis in the third quarter. However the rate of growth remained below expectations.
Commenting on the report, Ian McCafferty, CBI chief economic adviser, said, "Activity picked up in the financial services sector in the last three months at a pace not seen since before the credit crunch. Although this growth was slower than hoped, it did help firms' profitability to rise further".
The pound was also up against the euro, with EUR/GBP shedding 0.24% to hit 0.8504.
Also Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.