Investing.com - The pound was steady against the U.S. dollar on Monday, trading within close distance of a 28-month high as market sentiment found support in light year-end trade.
GBP/USD hit 1.6500 during European morning trade, the session high; the pair subsequently consolidated at 1.6479, easing up 0.01%.
Cable was likely to find support at 1.6407, the low of December 27 and resistance at 1.6618.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
Risk-related currencies strengthened after European Central Bank Governing Council member Jens Weidmann on Friday said keeping interest rates low may endanger political reforms.
According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.
Meanwhile, the greenback still remained supported amid expectations of further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Sterling was little changed against the euro, with EUR/GBP dipping 0.03% to 0.8338.
Later in the day, the U.S. was to release industry data on pending home sales.
GBP/USD hit 1.6500 during European morning trade, the session high; the pair subsequently consolidated at 1.6479, easing up 0.01%.
Cable was likely to find support at 1.6407, the low of December 27 and resistance at 1.6618.
Trading volumes were thin as many investors already closed books before the end of the year, reducing liquidity in the market and increasing volatility, which helped exaggerate market moves.
Risk-related currencies strengthened after European Central Bank Governing Council member Jens Weidmann on Friday said keeping interest rates low may endanger political reforms.
According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.
Meanwhile, the greenback still remained supported amid expectations of further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Sterling was little changed against the euro, with EUR/GBP dipping 0.03% to 0.8338.
Later in the day, the U.S. was to release industry data on pending home sales.