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Forex - Pound remains lower against broadly stronger dollar

Published 08/12/2013, 10:26 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound remained lower against the U.S. dollar on Monday, as speculation over a possible near-term end to the Federal Reserve's bond-buying program continued to support demand for the greenback.

GBP/USD hit 1.5462 during U.S. morning trade, the pair's lowest since August 7; the pair subsequently consolidated at 1.5471, shedding 0.23%.

Cable was likely to find support at 1.5400 and resistance at 1.5557, Friday’s high.

The dollar strengthened against the other major currencies amid expectations that strong U.S. retail sales data for July would underline the view that the economic recovery is on track.

The greenback came under broad selling pressure last week after the latest U.S. jobs report on August 2 showed that the economy added fewer jobs than expected in July. The disappointing data saw investors reassess expectations for when the U.S. central bank would start to taper its asset purchase program.

Markets were looking ahead to U.K. data on employment on Wednesday, after the Bank of England announced plans last week to tie bank rates to the unemployment rate.

Sterling was higher against the euro with EUR/GBP slipping 0.16%, to hit 0.8590.

Also Monday, official data showed that Greece’s economy contracted by 4.6% on a year-over-year basis in the second quarter, compared to expectations for a contraction of 4.8%.


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