GBP USD analysis: Pound climbs ahead of U.S. Treasury budget

NEW YORK (Forex News Now) – In volatile trading, sterling climbed against the dollar on Monday, as the U.S. Treasury was set to deliver its monthly budget statement and on the back of upbeat data from China.

In European afternoon currency market trading, GBP/USD hit 1.5442, up 0.56 percent on the day.

Also Monday, British unions backed a mass industrial and political campaign against harsh government spending cuts, as union leaders said they were ready for major industrial action, The Guardian reported.

According to GBP USD analysis, cable was likely to touch support around the low of Sept. 7, 1.5297, and encounter immediate resistance around the high of Sept. 8, 1.5533.

Over the weekend, official data showed that Chinese industrial production jumped 13.9 percent year-on-year in August; reports on retail sales and consumer price inflation were also encouraging.

Elsewhere, the pound slumped versus the euro: EUR/GBP traded at 0.833, up 0.92 percent, according to intraday analysis.