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Forex - GBP/USD holds steady ahead of Yellen speech

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Investing.com -

Investing.com - The pound held steady against the U.S. dollar on Friday, hovering close to four-and-a-half month lows as investors remained cautious ahead of a speech by Federal Reserve Chair Janet Yellen later in the day and amid fresh concerns over tensions in Ukraine.

GBP/USD hit 1.6568 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6579, inching down 0.01%.

Cable was likely to find support at 1.6566, the low of April 7 and resistance at 1.6679, the high of August 20.

The greenback remained broadly supported after a recent string of upbeat U.S. data fuelled optimism over the strength of the country's economic recovery.

Investors now looked ahead to the second day of the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, for further indications on future policy moves.

The spotlight will be on Fed Chair Janet Yellen, who will speak later Friday in her first appearance at Jackson Hole as head of the U.S. central bank.

On Wednesday, the minutes of the Fed's July meeting showed that some officials believe the strengthening recovery and ongoing improvement in the labor market supports a move towards tightening monetary policy.

Separately, investors remained cautious after Ukraine declared on Friday that Russia had launched a "direct invasion" of its territory after Moscow sent a convoy of aid trucks across the border into eastern Ukraine where pro-Russian rebels are fighting government forces.

Sterling was higher against the euro, with EUR/GBP slipping 0.12% to 0.8002.

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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.

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