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Forex - Pound pushes higher against dollar

Published 05/20/2013, 04:33 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound pushed higher against the dollar on Monday, as investors took a breather after strong U.S. consumer sentiment data on Friday propelled the greenback to six-week highs.

GBP/USD hit 1.5216 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5214, gaining 0.31%.

Cable was likely to find support at 1.5159, Friday’s low and the pair’s lowest since April 4 and resistance at 1.5281, Friday’s high.

The dollar rallied on Friday after data showed that U.S. consumer sentiment rose more than expected in May, climbing to an almost six year high.

The University of Michigan said its consumer sentiment index jumped to 83.7 in May, its highest level since 2007, from 76.4 in the preceding month, outstripping expectations for a reading of 78.0.

The strong data fuelled speculation that the Federal Reserve may begin to scale back its USD85 billion a month asset purchase program this year.

Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP edging up 0.03% to 0.8463.

Trade volumes looked likely to remain light on Monday, with many European traders away for the Whit Monday holiday.



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