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Forex - Pound at daily high against broadly weaker dollar

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Forexpros - The pound advanced to a daily high against the U.S. dollar on Monday, as concerns over possible intervention by Japanese authorities or the Swiss National Bank supported demand for sterling as a relatively safe haven.

GBP/USD hit 1.6518 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.6515, gaining 0.30%.

Cable was likely to find support at 1.6347, the low of August 17 and short-term resistance at 1.6564, last Thursday's high.

Earlier in the day, Japan's finance minister Yoshihiko Noda warned that the country would take decisive action against any speculative moves, saying "We won't rule out any measures and will take decisive action when necessary."

Elsewhere, Swiss daily newspaper SonntagsZeitung reported that the Swiss Cabinet expects the SNB to set an exchange-rate target of at least 1.2 francs per euro, without identifying a source for the information.

The pound was also higher against the euro, with EUR/GBP dipping 0.08% to hit 0.8734.

The single currency remained under pressure after German Chancellor Angela Merkel reiterated her opposition to calls for the euro zone to issue joint euro-denominated bonds as a way for indebted euro zone states to borrow.

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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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