Shutterstock photo
Markets

Forex - GBP/USD pushes slightly higher in light trade

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The pound pushed slightly higher against the U.S. dollar in light trade on Monday, as demand for the greenback remained under pressure after the release of disappointing U.S. nonfarm payrolls data on Friday.

GBP/USD hit 1.6609 during U.S. morning trade, the pair's highest since April 3; the pair subsequently consolidated at 1.6618, adding 0.26%.

Cable was likely to find support at 1.6510, the low of March 26 and resistance at 1.6675, the high of April 1.

Sentiment on the dollar remained fragile after data on Friday showed that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000.

The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a downtick to 6.6%.

Although the data disappointed market expectations, it still seemed to indicate that the Federal Reserve will maintain the current pace of reductions to its asset purchase program.

Meanwhile, the pound's gains were limited after reports last week showed that all three U.K. PMI surveys for March fell short of expectations, but still pointed to robust first quarter growth.

Sterling was little changed against the euro, with EUR/GBP inching up 0.02% to 0.8270.

The single currency found support as comments by European Central Bank officials eased concerns over the prospect of quantitative easing.

Earlier Monday, ECB policymaker Yves Mersch said that while the central bank was working on plans for large-scale asset purchases to drive up inflation, this program is not required yet.

Separately, Bundesbank president Jens Weidmann said that monetary policy cannot solve the financial crisis, and urged euro zone political leaders to keep reforming their economies.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

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.

Other Topics

ForEx