Investing.com - The pound rose to two-and-a-half week highs against the dollar on Monday after Friday’s weaker-than-forecast U.S. jobs data added to uncertainty over whether the Federal Reserve will start to phase out stimulus measures.
GBP/USD hit 1.5686 during European afternoon trade, the highest since August 21; the pair subsequently consolidated at 1.5682, gaining 0.33%.
Cable was likely to find support at 1.5613, the session low and resistance at 1.5716, the high of August 21.
Data on Friday showed that the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists and jobs growth for the two previous months was also revised lower.
The report raised some doubts over whether the Fed will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Market sentiment remained supported after improved trade data out of China over the weekend added to indications that the world’s second largest economy is recovering from a slowdown.
Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.
Data released on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.
In the U.K., Chancellor George Osborne said in a speech on Monday that the economy is “turning a corner”, but added that risks to the recovery still remained.
Sterling was higher against the euro, with EUR/GBP sliding 0.23% to 0.8413.
In the euro zone, a report showed that the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.
GBP/USD hit 1.5686 during European afternoon trade, the highest since August 21; the pair subsequently consolidated at 1.5682, gaining 0.33%.
Cable was likely to find support at 1.5613, the session low and resistance at 1.5716, the high of August 21.
Data on Friday showed that the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists and jobs growth for the two previous months was also revised lower.
The report raised some doubts over whether the Fed will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Market sentiment remained supported after improved trade data out of China over the weekend added to indications that the world’s second largest economy is recovering from a slowdown.
Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.
Data released on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.
In the U.K., Chancellor George Osborne said in a speech on Monday that the economy is “turning a corner”, but added that risks to the recovery still remained.
Sterling was higher against the euro, with EUR/GBP sliding 0.23% to 0.8413.
In the euro zone, a report showed that the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.