Investing.com - The pound held steady against the U.S. dollar in holiday-thinned trade on Monday, as investors remained focused on comments by Federal Reserve Chairman Ben Bernanke later in the week, amid sustained hopes for fresh easing measures to boost growth.
GBP/USD hit 1.5797 during U.S. morning trade, the pair’s lowest since August 22; the pair subsequently consolidated at 1.5806, easing 0.03%.
Cable was likely to find support at 1.5740, the low of May 22 and resistance at 1.5868, the high of August 24.
Trade volumes were expected to remain light on Monday, with markets in the U.K. closed for a bank holiday weekend.
Investors remained cautious ahead of a speech by Fed Chairman Ben Bernanke at an annual symposium in Jackson Hole on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Sentiment on the pound remained fragile after revised data on Friday showed that the U.K. economy contracted slightly less than initially estimated in the second quarter, but disappointed some expectations for a more significant upward revision.
The report indicated that broad economic weakness still remained, keeping alive expectations for another round of quantitative easing by the Bank of England.
Elsewhere, the pound was little changed against the euro with EUR/GBP adding 0.06%, to hit 0.7919.
Also Monday, data showed that German business sentiment declined for a fourth successive month in August, underlining concerns over the impact of the debt crisis on the region’s largest economy.
Investors remained hopeful that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September.
GBP/USD hit 1.5797 during U.S. morning trade, the pair’s lowest since August 22; the pair subsequently consolidated at 1.5806, easing 0.03%.
Cable was likely to find support at 1.5740, the low of May 22 and resistance at 1.5868, the high of August 24.
Trade volumes were expected to remain light on Monday, with markets in the U.K. closed for a bank holiday weekend.
Investors remained cautious ahead of a speech by Fed Chairman Ben Bernanke at an annual symposium in Jackson Hole on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Sentiment on the pound remained fragile after revised data on Friday showed that the U.K. economy contracted slightly less than initially estimated in the second quarter, but disappointed some expectations for a more significant upward revision.
The report indicated that broad economic weakness still remained, keeping alive expectations for another round of quantitative easing by the Bank of England.
Elsewhere, the pound was little changed against the euro with EUR/GBP adding 0.06%, to hit 0.7919.
Also Monday, data showed that German business sentiment declined for a fourth successive month in August, underlining concerns over the impact of the debt crisis on the region’s largest economy.
Investors remained hopeful that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September.