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Forex - GBP/USD slips lower in cautious trade

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Investing.com - The pound slipped lower against the U.S. dollar on Monday, as safe haven demand found support amid concerns over the strength of the U.S. labor market's recovery and upcoming U.S. debt ceiling negotiations.

GBP/USD hit 1.6022 during European morning trade, the session low; the pair subsequently consolidated at 1.6048, shedding 0.13%.

Cable was likely to find support at 1.6008, Friday's low and a one-month low and resistance at 1.6107, Friday's high.

The dollar remained supported after Friday's U.S. nonfarm payrolls data indicated that the recovery in the labor market may be moderating.

The U.S. economy added 155,000 jobs in December, slightly higher than forecasts for an increase of 150,000, but easing from an upwardly revised increase of 161,000 in November. The unemployment rate held steady at 7.8%.

Meanwhile, relief over an agreement to avoid the U.S. fiscal cliff was offset by concerns about continuing political wrangling over further budget cuts and raising the U.S. debt ceiling.

The dollar also found some support after last week's minutes from the Federal Reserve's December meeting showed that some policymakers considered an earlier-than-expected end to the bank's quantitative easing program.

Sterling edged higher against the euro, with EUR/GBP dipping 0.08% to 0.8124.

The euro was little changed after the Sentix index of investor confidence in the euro zone came in at minus seven in January, its highest level since February 2011, after a reading of minus 16.8 last month.

Later Monday, the euro zone was to release official data on producer price inflation.

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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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