Forexpros – Sentiment the U.S. is moving closer to firmer economic footing sparked global appetite for risk on Friday, sending investors buying currencies like the pound in search of more rewarding assets worldwide, although the mood tempered in late trading.
GBP/USD was trading at 1.5500, down 0.09% after posting strong gains in afternoon trading on Friday, down after topping out at 1.5557.
The pair sought to test technical support at 1.5487 and resistance at 1.5504.
In the U.S., inflation came in flat in November, below market expectations of 0.1% growth.
The data came in just a few days in wake of a Federal Reserve statement that monetary policy will remain unchanged until sometime next year.
Therefore, a stable dollar coupled with perceptions that other many otherwise riskier assets like the euro and gold were oversold sparked robust demand for currencies like the pound, which investors needed to buy assets like stocks.
London’s key stocks barometer, the FTSE 100 Index, closed up 0.06% at 5404.16.
The pound was down against the euro, with EUR/GBP up 0.16% at 0.8404, and down against the yen, with GPB/JPY dipping 0.11% to 120.65.
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