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Forex - GBP/USD holds steady, eyes on U.S. jobs data

Published 12/05/2014, 04:25 AM
Pound little changed vs. dollar in cautious trade
GBP/USD
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EUR/GBP
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Investing.com - The pound was steady against the U.S. dollar on Friday, as sentiment on sterling remained fragile a day after the Bank of England left its monetary policy on hold, while markets were jittery ahead of key U.S. employment data to be released later in the trading session.

GBP/USD hit 1.5624 during European morning trade, the pair's lowest since Wednesday; the pair subsequently consolidated at 1.5668, dipping 0.04%.

Cable was likely to find support at 1.5585, the low of December 1 and a 14-month low and resistance at 1.5765, the high of December 1.

The pound came under mild pressure on Thursday after the BoE's monetary policy committee left U.K. interest rates on hold at their current record low of 0.5% and maintained the size of its asset purchase program at £375 billion.

Meanwhile, market participants were eyeing the closely watched government report on U.S. nonfarm payrolls due later in the day for further indications on the strength of the country's job market.

On Thursday, the Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending November 29 decreased by 17,000 to 297,000 from the previous week’s revised total of 314,000.

Sterling was also steady against the euro, with EUR/GBP inching down 0.04% to 0.7896.

The single currency pulled back from the previous day's sharp gains posted after European Central Bank President Mario Draghi indicated that it would not embark on quantitative easing for now, saying the bank would reassess its stimulus program in the first quarter of 2015.

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