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Forex - GBP/USD edges higher; London closed for Boxing Day

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Investing.com - Investing.com - The pound edged modestly higher against the U.S. dollar in light trade on Wednesday, but gains were capped amid a lack of fresh cues, as financial markets in London remained closed for the Christmas break.

GBP/USD hit 1.6138 during European morning trade, the session high; the pair subsequently consolidated at 1.6133, adding 0.08%.

Cable was likely to find support at 1.6100, Tuesday's low and resistance at 1.6205, the previous session's high.

Market players remained focused on developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

President Barack Obama, currently vacationing in Hawaii, plans to return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year-end deadline, the White House said late Tuesday.

Both chambers of Congress are also due to return to work on Thursday.

Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

The U.S. is to publish industry data on house price inflation as well as a report on manufacturing activity in Richmond later in the trading day.

Elsewhere, Sterling was lower against the euro with EUR/GBP edging 0.07% higher, to hit 0.8188, the highest level since May 1.

Trading volumes are expected to remain light because many investors have closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing the volatility.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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