September 1, 2016

GBP/USD edges higher in thin trad

Sterling was steady against the euro, with EUR/GBP easing 0.05% to 0.7957.

The pound edged higher against the U.S. dollar on Wednesday, as investors locked in profits following the greenback’s recent strengthening and as trading volumes were expected to remain thin in the absence of any major economic reports from the U.S. throughout the day.

Cable was likely to find support at 1.6537, the session low and a five-month low and resistance at 1.6599, the high of August 25.


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

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.


Also 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.