Foreign exchange - GBP/USD slips decrease as markets digest ECB assertion

© Reuters. Pound edges lower vs. dollar after rallying on ECB policy statement

Investing.com – The pound slipped lower against the U.S. dollar on Friday, after the European Central Bank’s policy statement sent sterling higher on Thursday and as expectations for a U.S. rate hike this month took over market sentiment.

hit 1.5078 during European morning trade, the session low; the pair subsequently consolidated at 1.5120, slipping 0.16%.

Cable was likely to find support at 1.4902, Thursday’s low and nearly a seven-month low and resistance at 1.5197, the high of November 23.

The pound had strengthened after ECB President Mario Draghi said on Thursday that the pace of the quantitative easing program is to remain unchanged at €60 billion, disappointing expectations that the central bank would speed up its bond-buying scheme.

Draghi added that the bank will expand its bond-buying purchase scheme beyond the current cut-off point of September 2016 until the end of March 2017, or beyond if necessary.

The comments came after to -0.3% from -0.20%, in line with market expectations.

was left unchanged at a record-low 0.05%, in line with market expectations.

But the dollar regained ground after Federal Reserve Chair Janet Yellen strongly indicated to Congress on Thursday that Fed policymakers are likely to vote to raise interest rates at its meeting in two weeks, barring any major shocks to the global economy.

“I currently judge that US economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market,” she said.

Market participants were eyeing a highly-anticipated report on U.S. employment due later in the day for further indications on the strength of the labor market.

Sterling was higher against the euro, with sliding 0.35% to 0.7199.

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Foreign exchange - GBP/USD slips decrease as markets digest ECB assertion