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Forex - GBP/USD holds steady near 3-week highs

Published 11/18/2013, 10:22 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound remained near three-week highs against the U.S. dollar on Monday, as speculation the Federal Reserve will decide to maintain the level of its monthly asset purchases for the time being continued to weigh on the greenback.

GBP/USD hit 1.6149 during U.S. morning trade, the pair's highest since October 28; the pair subsequently consolidated at 1.6119, inching up 0.01%.

Cable was likely to find support at at 1.6047, Friday’s low and resistance at 1.6147, the session high.

The dollar remained under pressure as comments by Fed Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus to ensure a robust economic recovery.

Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

Separately, market sentiment improved after China outlined a series of broad economic reforms late Friday, including the easing of the one-child policy and opening the way for more private investment in state-controlled industries.

The government’s reform plan is seen as paving the way towards a new model for growth in the world’s second-largest economy.

Sterling was lower against the euro, with EUR/GBP rising 0.25% to 0.8393.

The single currency found support after data on Monday showed that the euro zone’s trade surplus widened to EUR13.1 billion in September from EUR8.6billion a year earlier. The report said exports rose 3%, while imports were flat.

Meanwhile, Germany’s central bank said in its monthly report on Monday that there is a good chance that the economic recovery in Germany will be further cemented in the coming months.


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