Investing.com - The pound was almost unchanged against the dollar in thin trade on Monday with markets in the U.K. closed for a holiday, while speculation over how soon the Federal Reserve will start to unwind stimulus measures continued.
GBP/USD hit 1.5584 during European morning trade, the session high; the pair subsequently consolidated at 1.5574, edging up 0.04%.
Cable was likely to find support at 1.5537, Friday’s low and resistance at 1.5636, Friday’s high.
Data on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The data sparked concerns over the strength of the recovery in the housing sector and added to uncertainty over whether the Fed will start to scale back its USD85 billion-a-month asset purchase program next month.
Sterling remained supported after data on Friday showed that U.K. second quarter growth was revised up to 0.7% from an initial estimate of 0.6%.
Investors were looking ahead to a speech by Bank of England Governor Mark Carney later in the week, amid concerns that he would reiterate that the bank intends to keep interest rates on hold at current record lows levels, as outlined in the bank’s forward guidance.
Earlier this month the BoE said it would keep bank rates on hold until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
The pound edged higher against the euro, with EUR/GBP edging down 0.12% to 0.8583.
Investors were looking ahead to U.S. data on durable goods orders later in the trading day.
GBP/USD hit 1.5584 during European morning trade, the session high; the pair subsequently consolidated at 1.5574, edging up 0.04%.
Cable was likely to find support at 1.5537, Friday’s low and resistance at 1.5636, Friday’s high.
Data on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The data sparked concerns over the strength of the recovery in the housing sector and added to uncertainty over whether the Fed will start to scale back its USD85 billion-a-month asset purchase program next month.
Sterling remained supported after data on Friday showed that U.K. second quarter growth was revised up to 0.7% from an initial estimate of 0.6%.
Investors were looking ahead to a speech by Bank of England Governor Mark Carney later in the week, amid concerns that he would reiterate that the bank intends to keep interest rates on hold at current record lows levels, as outlined in the bank’s forward guidance.
Earlier this month the BoE said it would keep bank rates on hold until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
The pound edged higher against the euro, with EUR/GBP edging down 0.12% to 0.8583.
Investors were looking ahead to U.S. data on durable goods orders later in the trading day.