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Forex - Pound steady against dollar in quiet trade

Published 08/28/2012, 08:33 AM
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EUR/GBP
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Investing.com - The pound was little changed against the U.S. dollar on Tuesday, as concerns over the economic outlook for the U.K. curbed demand for sterling and investors remained cautious ahead of a speech by Federal Reserve Chairman Ben Bernanke on Friday.

GBP/USD hit 1.5754 during European afternoon trade, the pair’s lowest since August 21; the pair subsequently consolidated at 1.5785, dipping 0.05%.

Cable was likely to find support at 1.5701, the low of August 21 and resistance at 1.5827, Monday’s high.

The pound came off the session low against the dollar earlier, following news that European Central Bank President Mario Draghi cancelled plans to attend the Federal Reserve’s annual summit in Jackson Hole, Wyoming, later this week due to a “heavy workload”.

The reports fuelled expectations that the ECB is working on policy measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

The ECB president had been due to speak at the summit on Saturday, one day after a keenly anticipated speech by Fed Chairman Ben Bernanke, which comes amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

But sentiment on the pound remained fragile as concerns over broad economic weakness kept alive expectations for another round of quantitative easing by the Bank of England.

The pound slumped to a three-week low against the euro, with EUR/GBP adding 0.46% to trade at 0.7950.

Later in the day, the U.S. was to release a report on consumer confidence, as well as industry data on house price inflation.



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