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Forex - GBP/USD remains moderately lower in subdued trade

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Investing.com -

Investing.com - The pound remained moderately lower against the U.S. dollar in subdud trade on Monday, as trading volumes remained thin with no major economic reports to be released, while Friday's U.S. nonfarm payrolls report still lent support to the greenback.

GBP/USD hit 1.6788 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6786, easing 0.09%.

Cable was likely to find support at 1.6723, the low of June 5 and resistance at 1.6882, the high of May 27.

On Friday, the Department of Labor reported that the U.S. economy added 217,000 jobs last month, just under expectations for jobs growth of 218,000, while the unemployment rate remained unchanged at a five-and-a-half year low of 6.3%.

Meanwhile, demand for the pound continued to be underpinned by expectations for a rate hike by the Bank of England in the early part of next year.

Data last Wednesday showed that the U.K. service sector expanded at a faster-than-expected rate in May, indicating that the economic recovery is continuing to deepen.

Sterling was higher against the euro, with EUR/GBP shedding 0.34% to 0.8094.

The single currency came under pressure after borrowing costs in the euro zone fell to fresh record lows on Monday, as market sentiment was boosted by the European Central Bank's decision last week to launch a package of measures to avert the threat of persistently low inflation in the euro area.

The yield on Spain's 10-year bonds fell to 2.6% on Monday, falling below their U.S. equivalent which was yielding 2.61%. The yield on Ireland's 10-year bonds fell to a euro-era record low of 2.61% while the yield on German 10-year bonds fell to the lowest against their U.S. counterpart since 2005.

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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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