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Forex - Pound at four-month lows vs. stronger dollar

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Investing.com - The pound was trading at four-month lows against the stronger dollar on Monday as better-than-forecast U.S. jobs data on Friday bolstered expectations that the Federal Reserve will soon start to unwind its bond buying program.

GBP/USD hit 1.4858 during European morning trade, the session low; the pair subsequently consolidated at 1.4889, dipping 0.02%.

Cable was likely to find near-term support at 1.4856, Friday's low and a four-month trough and resistance at 1.4950.

Demand for the dollar continued to be underpinned after official data showed that the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.

May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.

The pound remained under pressure after falling more than 1% against the dollar on Thursday after the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.'s economic recovery.

Elsewhere, sterling was fractionally lower against the euro, with EUR/GBP inching up 0.06% to 0.8619.

Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi said last week that the bank expects to maintain interest rates at current or lower levels for an "extended" period of time.

The euro showed little reaction after official data earlier showed that Germany posted a smaller-than-expected trade surplus of EUR14.1 billion in May, as exports decreased by 4.8% on a year-over-year basis and imports fell by 2.6%.

Analysts had expected a trade surplus of EUR17.5 billion.

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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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