Sterling is going through rebound in a quiet Monday trade with no data releases from the UK and with US banks being closed in observance of Labour Day holiday. Sterling has fallen 1.9% versus a basket of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes in the past month, paring a 5.8% first-half gain when it was the best performer after the Swiss franc. That fall is a blow for hedge funds, which turned positive on the pound versus the greenback for the first time in a year last week.
They are relying on a boost to Bank of England interest rates, but traders have pushed back wagers on an increase far into next year. And the pound's appeal as a haven is waning, dampening the prospects of a rally amid the turmoil in emerging markets. Sterling fell to a three-month low against the dollar on Friday, hit by a slew of soft data out of the UK last week that has raised doubts amongst investors on when the Bank of England will hike interest rates.
Sterling is currently being traded few points above 1.5240 level. Pair is likely to find support around 1.5160 area and resistance above 1.5260 level. There will be no major data releases in the rest of the session.
