Investing.com - The pound was almost unchanged against the U.S. dollar on Monday, as trading volumes remained thin ahead of the New Year holiday.
Global financial markets closed early on Thursday, Christmas Eve, and remained shut for Christmas Day on Friday.
Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books due to the holiday period, reducing liquidity in the market and increasing volatility.
GBP/USD hit 1.4935 during European morning trade, the session high; the pair subsequently consolidated at 1.4923.
Cable was likely to find support at 1.4860, the low of December 24 and resistance at 1.5003, the high of December 17.
With the first U.S. rate hike since 2006 out of the way, investors were now focusing on the pace of future rate increases. The Federal Reserve, from its forecasts, is anticipating four rate hikes next year.
However, the Fed funds futures currently suggests there will be just two rate increases, one in June and one in December.
Mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.
Sterling was fractionally lower against the euro, with EUR/GBP easing up 0.09% to 0.7354.