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Forex - Pound rises to 1-week highs vs. weaker dollar

Published 09/08/2015, 04:17 AM
Pound gains ground vs. greenback, central bank meetings remain in focus
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EUR/GBP
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Investing.com - The pound rose to one-week highs against the U.S. dollar on Tuesday, as sentiment on the greenback remained vulnerable ahead of the Federal Reserve's highly-anticipated policy meeting scheduled next week.

GBP/USD hit 1.5389 during European morning trade, the pair's highest since September 1; the pair subsequently consolidated at 1.5342, gaining 0.42%.

Cable was likely to find support at 1.5168, Monday's low and resistance at 1.5407, the high of September 1.

Sentiment on the greenback remained vulnerable after Friday's U.S. jobs report failed to provide much clarity on when the Fed will decide to raise short term interest rates.

The Labor Department reported that the U.S. economy added 173,000 jobs last month, the smallest increase in employment in five months and was below expectations for 220,000, while the unemployment rate ticked down to 5.1%, its lowest level since April 2008.

Market participants were also lookig ahead to the Bank of England's upcoming policy statement on Thursday, for further indications on whether or not it plans to raise interest rates in the near future.

Sterling was also higher against the euro, with EUR/GBP shedding 0.37% to 0.7283.

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