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Forex - Pound holds steady against dollar in thin trade

Published 12/29/2015, 04:31 AM
Pound little changed vs. dollar in holiday trade
GBP/USD
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EUR/GBP
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Investing.com - The pound held steady against the U.S. dollar on Tuesday, as trading volumes remained thin after Christmas and ahead of the New Year.

Heading into the final week of the year, trading volumes are expected to remain light as many traders already closed books, reducing liquidity in the market which could result in exaggerated moves.

GBP/USD hit 1.4914 during European morning trade, the session high; the pair subsequently consolidated at 1.4889.

Cable was likely to find support at 1.4815, the low of December 23 and resistance at 1.4947, the high of December 25.

Market participants were eyeing a report on U.S. consumer confidence due later in the day after 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.

With the first U.S. rate hike since 2006 out of the way, investors are now focusing on the pace of future rate increases.

Sterling was lower against the euro, with EUR/GBP rising 0.22% to 0.7382.

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