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Forex - Pound edges higher against dollar but gains limited

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Forexpros - The pound edged higher against the U.S. dollar on Monday, but gains were limited as a combination of fears over the outlook for global growth and concerns over sovereign debt issues in the euro zone weighed on risk appetite.

GBP/USD hit 1.6509 during early European trade, the daily high; the pair subsequently consolidated at 1.6480, inching up 0.08%.

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

Investors remained on edge amid mounting speculation that Japanese officials could intervene in currency markets to curb the yen's gains after Japan's finance minister Yoshihiko Noda warned that the country would take decisive action against any speculative moves.

"We will watch markets even more closely than before to see whether there is any speculative activity. We won't rule out any measures and will take decisive action when necessary," minister Noda said.

The pound was also higher against the euro, with EUR/GBP slipping 0.07% to hit 0.8735.

Also Monday, German Finance Minister Wolfgang Schaeuble said in a radio interview that the euro remained a stable currency, adding that markets still had confidence in the single currency.

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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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