COZfx: Dollar steady while UK jobs data boosts pound

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COZforex: The dollar was steady against the other major currencies on Wednesday as concerns over Syria eased, while the pound rallied to 7 month highs after strong UK employment data boosted the outlook for the economic recovery.

Trading trend in the Pound is expected to be determined by a report on claimant count change and unemployment rate in the UK, due to be released later today. The UK jobless rate is expected to remain at 7.8% in the 3 months to July, while the number of jobless claimants is set to decline by 22,000 over the month to August. Investors are also expected to keep a close watch on MPC Member, David Miles’ speech, expected to commence later during the day.

During European morning trade, the pound strengthened against the dollar, with GBP/USD rising 0.30% to 1.5778, after rising as high as 1.5826 earlier, the highest level since February. COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.5691, and a decline through could take it to the next support line of 1.5658. Meanwhile, the pair is predicted to find its first resistance at 1.5751, and a rise through could take it to the next resistance line of 1.5778.

Demand for the traditional safe haven yen was hit after President Barack Obama agreed Tuesday to explore a plan proposed by Russia for Syria to place its chemical weapons under international control in order to avoid a US military intervention.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07% to 81.76.

(COZ forex UK)