Investing.com - The pound weakened against the dollar in early Asian trading Thursday as investors snapped up greenbacks on sentiment that despite a European Central Bank move to inject welcome liquidity into the financial system, the economy needs more action.
GBP/USD was trading at 1.5672, down 0.03%, and slightly off from a session high of 1.5684 and above a low of 1.5656.
The pair was likely to test support at 1.5502, Tuesday's low, and resistance at 1.5684, Thursday's high.
The European Central Bank on Wednesday arranged loans totaling EUR489.19 billion to 523 eurozone banks with the aim of facilitating lending and easing a credit squeeze there.
The financial sector welcomed the financing, but market watchers said the move did not go far enough to seriously loosen up interbank lending and also failed to fuel serious demand for government debt on the part of the banking sector.
Many are calling on the Europe Central Bank to buy government debt directly instead of lending money to banks, but monetary policy authorities have refused on the grounds that doing so goes against its mandate to control inflation.
The market was eagerly awaiting U.K. gross domestic product and current account data later Thursday.
Weekly jobless claims and quarterly growth figures were due out in the U.S. as well.
The pound was down against the euro, with EUR/GBP up 0.02% at 0.8326, and down against the yen, with GPB/JPY down 0.07% at 122.27.
GBP/USD was trading at 1.5672, down 0.03%, and slightly off from a session high of 1.5684 and above a low of 1.5656.
The pair was likely to test support at 1.5502, Tuesday's low, and resistance at 1.5684, Thursday's high.
The European Central Bank on Wednesday arranged loans totaling EUR489.19 billion to 523 eurozone banks with the aim of facilitating lending and easing a credit squeeze there.
The financial sector welcomed the financing, but market watchers said the move did not go far enough to seriously loosen up interbank lending and also failed to fuel serious demand for government debt on the part of the banking sector.
Many are calling on the Europe Central Bank to buy government debt directly instead of lending money to banks, but monetary policy authorities have refused on the grounds that doing so goes against its mandate to control inflation.
The market was eagerly awaiting U.K. gross domestic product and current account data later Thursday.
Weekly jobless claims and quarterly growth figures were due out in the U.S. as well.
The pound was down against the euro, with EUR/GBP up 0.02% at 0.8326, and down against the yen, with GPB/JPY down 0.07% at 122.27.