Investing.com - The pound was little changed close to three-week highs against the dollar on Monday as market sentiment was bolstered by prospects for far reaching economic reforms in China, while indications that the Federal Reserve will keep its stimulus policies for longer weighed on the dollar.
GBP/USD dipped 0.04% to 1.6113 during European afternoon trade, from Friday’s close of 1.6116.
Cable was likely to find support at 1.6047, Friday’s low and resistance at 1.6147, the session high.
Investor confidence was boosted after China outlined a series of broad economic reforms late Friday, including the easing of the one-child policy and opening the way for more private investment in state-controlled industries.
The government’s reform plan is seen as paving the way towards a new model for growth in the world’s second-largest economy.
The dollar remained under pressure as comments by Fed Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus to ensure a robust economic recovery.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.19% to 0.8387.
The shared currency found support after data on Monday showed that the euro zone’s trade surplus widened to EUR13.1 billion in September from EUR8.6billion a year earlier. The report said exports rose 3%, while imports were flat.
Meanwhile, Germany’s central bank said in its monthly report on Monday that there is a good chance that the economic recovery in Germany will be further cemented in the coming months.
GBP/USD dipped 0.04% to 1.6113 during European afternoon trade, from Friday’s close of 1.6116.
Cable was likely to find support at 1.6047, Friday’s low and resistance at 1.6147, the session high.
Investor confidence was boosted after China outlined a series of broad economic reforms late Friday, including the easing of the one-child policy and opening the way for more private investment in state-controlled industries.
The government’s reform plan is seen as paving the way towards a new model for growth in the world’s second-largest economy.
The dollar remained under pressure as comments by Fed Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus to ensure a robust economic recovery.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.19% to 0.8387.
The shared currency found support after data on Monday showed that the euro zone’s trade surplus widened to EUR13.1 billion in September from EUR8.6billion a year earlier. The report said exports rose 3%, while imports were flat.
Meanwhile, Germany’s central bank said in its monthly report on Monday that there is a good chance that the economic recovery in Germany will be further cemented in the coming months.