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Forex - GBP/USD rangebound ahead of U.S. data

Published 05/13/2013, 08:16 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was almost unchanged against the dollar on Monday as speculation that the Federal Reserve may taper off its easing program supported sentiment towards the dollar.

GBP/USD hit 1.5385 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5366, easing up 0.02%.

Cable was likely to find support at 1.5313, Friday’s low and a two-week low and resistance at 1.5456, Friday’s high.

Demand for the dollar continued to be underpinned amid speculation over a possible near-term exit from the Fed’s asset purchase program after recent strong U.S. employment data indicated that the economic outlook is improving.

Meanwhile, the euro remained under pressure after a member of the European Central Bank’s governing council said the bank could cut its deposit rate into negative territory.

The deposit rate is the rate paid by the ECB on overnight deposits by euro zone banks.

Sterling was higher against the euro, with EUR/GBP sliding 0.16% to 0.8439.

The U.S. was to release its closely watched government report on retail sales later in the trading day.




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