The sterling was almost unchanged against its stronger US counterpart on Monday, trading close to two week lows as investors looked ahead to a series of economic reports later in the week.
GBP/USD touched lows of 1.6215, the weakest since September 16 and was last down 0.13% to 1.6222. The pair was likely to find support at the 1.6200 level and resistance at around 1.6330.
Demand for the dollar continued to be supported after data on Friday showed that the U.S. economy grew at an annual rate of 4.6% in the second quarter, the fastest pace in two-and-a-half years. The optimistic data added to the view that the strengthening economic recovery may prompt the Federal Reserve to raise interest rates sooner.
Investors were anticipating economic data from the U.S., with Friday’s nonfarm payrolls report sharply in focus after August’s report fell short of expectations.
Later on Monday the U.S. was to release data on personal income and expenditure, followed by a report on pending home sales.
The U.K. was to publish reports on manufacturing and service sector growth later in the week.
The pound advanced against the greenback in the first half of the year, rising to six year peaks of 1.7190 in mid-July, boosted by expectations that the robust recovery in the U.K. would see the Bank of England raise interest rates before then end of the year.
However, the dollar has rallied in the past two months amid expectations that the Fed is growing closer to hiking rates.
EUR/GBP edged up 0.10% to 0.7815 elsewhere, not far from the two year lows of 0.7784 struck last Thursday.
The single currency has remained under pressure since the European Central Bank unexpectedly cut rates to record lows earlier this month, in a bid to shore up inflation in the euro area.
The euro zone was to release preliminary data on consumer prices on Tuesday.
