FX Traders focus on the Pound vs. the Dollar during 3-week Highs
November 18, 2013 – The pound had little change from the close of a 3 week high against the dollar on Monday. As the market sentiment was bolstered by reforms in China, and the Federal Reserve will keep its stimulus policies for longer.
The GBP/USD dipped 0.04% to 1.6113 during the European afternoon trade session on Friday’s close of 1.6116.
The Cable found support at 1.6047, Friday’s low and resistance at 1.6147, the sessions high.
China’s economic reforms boosted investor confidence on Friday, including the scrapping the one-child policy and opening the way for more private investment in state-controlled industries.
The government’s reform plan is seen as paving the way towards a new model for growth in the world’s second-largest economy.
The dollar remain under the tightrope as comments made by seedy Fed chairwoman nominee, Janet Yellen last week reiterated the need for stimulus to encourage a robust economy.
Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
Sterling was lower against the euro, with EUR/GBP rising 0.19% to 0.8387.
The currency pair found support after reported data on Monday showed that the euro zone’s trade surplus widened well to EUR13.1 billion in September from EUR 8.6billion a year earlier. The report said exports rose somewhat by 3%, while imports were flat.
Meanwhile, Germany’s central bank said in its monthly report on Monday that there is a very good chance that the economic recovery in the largest European country, Germany will be further footed in the coming months.