FOREX NEWS
September 1, 2016

GBP/USD remains higher in subdued trad

The data fuelled further optimism over the strength of the U.S. economic recovery.

 

 

The pound remained higher against the U.S. dollar in subdued trade on Wednesday, as investors locked in gains on the greenback with no major U.S. economic reports to be released throughout the session.

GBP/USD hit 1.6606 during U.S. morning trade, the pair’s highest since August 20; the pair subsequently consolidated at 1.6590, rising 0.30%.

Cable was likely to find support at 1.6537, the session low and a five-month low and resistance at 1.6679, the high of August 20.

The dollar found support on Tuesday after the Conference Board said its index of consumer confidence rose to 92.4 this month, the highest since October 2007, from a reading of 90.3 in July.

 

Last week, Federal Reserve Chair Janet Yellen said at Jackson Hole that the U.S. economy is recovering and added the labor market is improving as well.

Sterling was higher against the euro, with EUR/GBP slipping 0.16% to 0.7948.

 

Schauble’s remarks came after Mr. Draghi said at Jackson Hole last week that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.

Earlier Wednesday, data showed that the Gfk German consumer climate index fell to 8.6 this month, from a reading of 9.0 in July. Analysts had expected the index to remain unchanged in August.

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