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Forex - GBP/USD steady close to 4-1/2 month low

Published 06/04/2012, 04:05 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was hovering close to a four-and-a-half month low against the U.S. dollar on Monday, after Friday’s surprisingly weak U.S. nonfarm payrolls data sparked fears over a slowdown in global economic growth.

GBP/USD hit 1.5342 during European morning trade, the session low; the pair subsequently consolidated at 1.5370, inching up 0.05%.

Cable was likely to find support at 1.5267, Friday’s low and a four-and-a-half month low and resistance at 1.5436, Friday’s high.

Official data on Friday showed that the U.S. economy added just 69,000 jobs in May, far below expectations for a gain of 150,000, while the unemployment rate ticked up to 8.2% from 8.1%.

The disappointing data added to concerns that the euro zone crisis is having a negative impact on global growth and fuelled speculation over the prospect for a third round of quantitative easing by the Federal Reserve.

Investor sentiment also remained weak amid fears that Spain’s high borrowing costs would force Madrid to seek outside financial aid to bailout its ailing banking sector.

The pound pushed higher against the euro, with EUR/GBP shedding 0.20% to hit 0.8077.

Trade volumes were expected to remain light on Monday, as markets in the U.K. were to remain closed for a national holiday.


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