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Forex - GBP/USD steady as market awaits Yellen cues

Published 07/14/2014, 11:48 AM
Updated 07/14/2014, 11:49 AM
Dollar holds steady against pound ahead of Yellen testimony
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Investing.com - The dollar held steady against the pound on Monday as investors spent a session void of major U.S. economic indicators on the sidelines prepping for Federal Reserve Chair Janet Yellen's two-day congressional testimony this week.

In U.S. trading on Monday, GBP/USD was trading down 0.12% at 1.7085, up from a session low of 1.7070 and off a high of 1.7144.

Cable was likely to find support at 1.7009, the low from June 30, and resistance at 1.7168, Thursday's high.

In the minutes of the Federal Reserve's June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not provide a timetable as to when interest rates may begin to rise afterwards.

Falling U.S. Treasury yields have many investors guessing the Fed might take its time when it comes to hiking benchmark interest rates to ensure recovery remains on track, though uncertainty kept the dollar steady on Monday, a day markets prepped for Yellen's testimony before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.

Elsewhere, sterling was down against the euro, with EUR/GBP up 0.31% at 0.7976, and up against the yen, with GBP/JPY up 0.15% at 173.50.

On Tuesday, the U.K. is to release private sector data on retail sales, as well as a report on consumer price inflation.

Bank of England Governor Mark Carney is to testify on the bank’s financial stability report to parliament’s Treasury committee.

The U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to release data on import prices, business inventories and manufacturing activity in the New York state.

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