Investing.com - The pound was almost unchanged against the U.S.
dollar on Friday, hovering close to six-year highs as expectations
for the Bank of England to soon raise interest rates continued to
GBP/USD hit 1.7131 during U.S. morning trade, the session low;
the pair subsequently consolidated at 1.7150, dipping 0.03%.
Cable was likely to find support at 1.7096, the low of July 1
and resistance at 1.7180, the session high and the most since
Sterling has strengthened broadly since the start of this year,
gaining more the 13% against the dollar amid expectations that the
deepening U.K. recovery will prompt the Bank of England to raise
rates before the end of the year.
Meanwhile, demand for the greenback remained supported after the
Labor Department on Thursday reported that that U.S. economy added
288,000 jobs last month, easily surpassing expectations for an
increase of 212,000, and that the U.S. unemployment rate fell to
6.1% from 6.3% in May, the lowest in almost six years.
The upbeat jobs report fuelled optimism over the strength of the
labor market and bolstered the outlook for the broader economic
Sterling was higher against the euro, with EUR/GBP edging down
0.14% to 0.7923.
Sentiment on the single currency remained vulnerable after
European Central Bank President Mario Draghi reiterated on Thursday
the bank's forward guidance that rates will remain on hold at
present or lower levels for an extended period.
He emphasized that "the governing council is also unanimous in
its commitment to use unconventional instruments' if necessary, to
address the risk of too-prolonged period of low inflation."
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