Investing.com - The pound strengthened against the dollar on
Friday as investors generally steered clear of the greenback to see
if U.S. lawmakers can agree on a spending package to avoid a
government shutdown in October.
In U.S. trading on Friday, GBP/USD was trading at 1.6137, up 0.60%,
up from a session low of 1.6030 and off from a high of 1.6138.
Cable was likely to find support at 1.5980, Wednesday's low, and
resistance at 1.6163, the high from Sept. 18.
Congress must approve a spending package by Oct. 1 to avoid a
partial government shutdown.
While markets are expecting a last-minute deal, uncertainty steered
investors away from the U.S. currency on Friday.
The Democratically-controlled Senate earlier Friday approved a
stop-gap spending bill to fund the government through Nov. 15.
The bill was stripped of language defunding President Barack
Obama's healthcare reform law, though the legislation will go back
to the Republican-controlled House of Representatives, which called
for defunding the president's healthcare law in the first place.
Elsewhere, the Thomson Reuters/University of Michigan consumer
sentiment index fell to 77.5 in September from a reading of 76.8
the previous month.
Analysts were expecting the index to rise to 78.0 this month.
Separately, official data showed that U.S. personal spending rose
0.3% in August, in line with expectations, after an upwardly
revised 0.2% increase the previous month.
Data also showed that personal income in the U.S. rose 0.4% last
month as expected after an upwardly revised 0.2% gain in July, also
in line with expectations.
Core personal consumption expenditures, which exclude food and
energy, rose 0.2% in August, more than the expected 0.1% gain after
a 0.1% increase in July.
The data continued to cloud market expectations as to when the
Federal Reserve will begin taper its USD85 billion monthly
bond-buying program, which weakens the dollar by driving down
interest rates to spur recovery.
Meanwhile across the Atlantic, sterling strengthened after Bank of
England Governor Mark Carney told the Yorkshire Post that he sees
no need for more bond-buying given the signs of recovery in the
The pound, meanwhile, was up against the euro and down against the
yen, with EUR/GBP down 0.36% at 0.8378 and GBP/JPY down 0.31% at
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