Investing.com – The pound extended gains against the U.S. dollar on Monday, climbing to a fresh three-day high after government data showed that U.S. personal spending rose more-than-expected in July.
GBP/USD hit 1.6450 during U.S. morning trade, the pair’s highest since August 24; the pair subsequently consolidated at 1.6446, gaining 0.48%.
Cable was likely to find support at 1.6257, last Thursday’s low and resistance at 1.6476, the high of August 16.
The Commerce Department said earlier that U.S. consumer spending rose at the fastest rate in five months in July, boosted by increased automobile sales, rising 0.8% surpassing expectations for a 0.5% gain.
The report showed that the personal consumption expenditures price index, or PCE, rose 0.4% after slipping 0.1% in June.
The data overshadowed a report by the National Association of Realtors showing that its pending home sales index fell by 1.3% in July, after rising by 2.4% in June. Analysts had expected pending home sales to fall by 1.0% last month.
The pound posted early gains against the dollar on Monday, as risk appetite revived after Federal Reserve Chairman Ben Bernanke said Friday that the U.S. economy was recovering and the central bank still had a “range of tools” it could use to bolster growth.
The pound was also higher against the euro, with EUR/GBP shedding 0.26% to hit 0.8835.
Also Monday, European Central Bank President Jean-Claude Trichet and other senior euro zone officials were appearing before the European Parliament's economics committee in Brussels to discuss the ongoing debt crisis in the single currency bloc.
GBP/USD hit 1.6450 during U.S. morning trade, the pair’s highest since August 24; the pair subsequently consolidated at 1.6446, gaining 0.48%.
Cable was likely to find support at 1.6257, last Thursday’s low and resistance at 1.6476, the high of August 16.
The Commerce Department said earlier that U.S. consumer spending rose at the fastest rate in five months in July, boosted by increased automobile sales, rising 0.8% surpassing expectations for a 0.5% gain.
The report showed that the personal consumption expenditures price index, or PCE, rose 0.4% after slipping 0.1% in June.
The data overshadowed a report by the National Association of Realtors showing that its pending home sales index fell by 1.3% in July, after rising by 2.4% in June. Analysts had expected pending home sales to fall by 1.0% last month.
The pound posted early gains against the dollar on Monday, as risk appetite revived after Federal Reserve Chairman Ben Bernanke said Friday that the U.S. economy was recovering and the central bank still had a “range of tools” it could use to bolster growth.
The pound was also higher against the euro, with EUR/GBP shedding 0.26% to hit 0.8835.
Also Monday, European Central Bank President Jean-Claude Trichet and other senior euro zone officials were appearing before the European Parliament's economics committee in Brussels to discuss the ongoing debt crisis in the single currency bloc.