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Forex - Pound hits session high vs. weaker dollar

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Investing.com - The pound rose to session highs against the broadly weaker dollar on Wednesday as the dollar's weakness against the yen pressured the greenback lower against the other major currencies.

GBP/USD hit 1.5125 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5114, gaining 0.52%.

Cable was likely to find support at 1.5007, the session low and an 11-week low and resistance at 1.5155, the high of May 27.

The yen rebounded against the dollar on Wednesday, regaining almost all of the previous day's 1.4% decline, as weakness in equities markets enhanced the safe haven appeal of the yen.

Market sentiment was hit after the International Monetary Fund lowered its growth forecast for the Chinese economy this year.

Meanwhile, the Organization for Economic Cooperation and Development cut its growth forecast for the global economy to 3.1% this year, from 3.4% six months ago.

OECD also urged the European Central Bank to implement more aggressive measures such as quantitative easing to spur growth in the euro zone.

In the U.K., a report by the Confederation of British Industry said its retail sales index fell to a 13-month low in May.

The CBI said its index of U.K. retailers fell to minus 11.0 in May from a reading of minus 1.0 in April.

Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.17% to 0.8516.

In Germany, official data on Wednesday showed that the number of people out of work rose by 21,000 in May, much more than the 5,000 increase expected. Germany's unemployment rate was unchanged at 6.9%, in line with expectations.

This was offset by data showing that German consumer price inflation accelerated to 1.5% in May from a year earlier, above expectations for a 1.3% increase.

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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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