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Forex - GBP/USD steady ahead of Bernanke speech

Published 01/14/2013, 04:02 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was ticking up and down between small gains and losses against the U.S. dollar on Monday, as investors looked ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the trading day.

GBP/USD hit 1.6154 during European morning trade, the session high; the pair subsequently consolidated at 1.6125, dipping 0.02%.

Cable was likely to find support at 1.6087, Friday’s low and resistance at 1.6178, Friday’s high.

Market participants were awaiting Bernanke's speech on monetary policy and the recovery from the global financial crisis later Monday, amid speculation that the Fed chairman would quash speculation over an earlier-than-expected end to the central bank’s quantitative easing program.

Investor confidence continued to be supported by hopes that the situation in the euro zone is stabilizing. Earlier Monday, International Monetary Fund head Christine Lagarde said the region’s economy will begin to recover this year, reiterating remarks by the president of the European Central Bank last week.

Sentiment on sterling remained fragile after a recent string of weak economic data fuelled concerns that the economy slid back into a recession in the fourth quarter.

Sterling was trading close to nine-month lows against the euro, with EUR/GBP easing up 0.11% to 0.8280.

Later Monday, the euro zone was to release official data on industrial production.



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