Shutterstock photo
Markets

Forex - GBP/USD rises to 3-day high in quiet trade

Shutterstock photo

Shutterstock photo

Forexpros - The pound rose to a three-day high against the U.S. dollar in quiet trade on Monday, as market sentiment strengthened after Federal Reserve Chairman Ben Bernanke said the bank was prepared to employ tools as needed to stimulate growth.

GBP/USD hit 1.6409 during early European trade, the pair's highest since August 24; the pair subsequently consolidated at 1.6401, gaining 0.21%.

Cable was likely to find support at 1.6257, last Thursday's low and resistance at 1.6476, the high of August 16.

In a speech at the Fed's annual gathering on Friday, Bernanke did not indicate that the central bank intended to take immediate action to bolster the economic recovery in the U.S., but did not outrule the use of additional monetary stimulus if necessary.

Bernanke also said that the bank's September policy-setting meeting would run for two days instead of one, to give policymakers more time to consider their options.

Elsewhere, industry data released earlier showed that house prices in the U.K. declined in August.

Property data firm Hometrack said house prices fell 0.1%, leaving them 3.7% below the August 2010 level.

Meanwhile, the pound was almost unchanged against the euro, with EUR/GBP dipping 0.02% to hit 0.8855.

Later in the day, the U.S. was to release industry data on pending home sales, while markets in the U.K. were closed for a bank holiday.

Forex News

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

Latest Markets Videos