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Forex - GBP/USD erases gains, hits fresh 9-day low

Published 08/12/2010, 06:22 AM
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Investing.com – The pound erased gains against the U.S. dollar on Thursday, falling to hit a fresh 9-day low amid rising risk aversion, as uncertainty over the global economic recovery continued.

GBP/USD hit 1.5586 during European morning trade, the pair's lowest since July 30; the pair subsequently consolidated at 1.5600, shedding 0.36%.

Cable was likely to find short-term support at 1.5551, the low of July 30 and resistance at 1.5908, the high of August 10.

Earlier in the day, a verbal intervention by Japanese government officials saw the U.S. dollar briefly ease against the yen but as USD/JPY resumed its slide towards a 15 year low, risk aversion escalated.

The pound was also down against the euro, with EUR/GBP gaining 0.04% to hit 0.8214.

Later in the day, the U.S. was to publish key data on initial jobless claims.

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