Investing.com - The pound fell to session lows against the U.S. dollar on Thursday, ahead of an auction of Spanish government bonds, amid speculation that Madrid may not seek a bailout before the end of this year.
GBP/USD hit 1.5942 during European morning trade, the pair's lowest since October 24; the pair subsequently consolidated at 1.5952, shedding 0.20%.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.5992, the session high.
Spain was due to auction between EUR3.5 billion and EUR4.5 billion of three-year, five-year and 20-year bonds later in the day, and a successful auction would reduce pressure on Prime Minister Mariano Rajoy to request a bailout.
Market sentiment was also hit by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
The pound was under pressure ahead of the Bank of England’s policy-setting meeting later in the day, after recent weak economic data dampened hopes for a sustained economic recovery in the U.K., but the central bank was not expected to announce fresh easing measures.
Sterling was fractionally higher against the euro, with EUR/GBP dipping 0.07% to 0.7984.
Investors were looking ahead to the European Central Bank's policy-setting meeting and President Mario Draghi's press conference later in the day.
Elsewhere, the U.S. was to publish official data on the trade balance as well as the weekly government report on initial jobless claims.
GBP/USD hit 1.5942 during European morning trade, the pair's lowest since October 24; the pair subsequently consolidated at 1.5952, shedding 0.20%.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.5992, the session high.
Spain was due to auction between EUR3.5 billion and EUR4.5 billion of three-year, five-year and 20-year bonds later in the day, and a successful auction would reduce pressure on Prime Minister Mariano Rajoy to request a bailout.
Market sentiment was also hit by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
The pound was under pressure ahead of the Bank of England’s policy-setting meeting later in the day, after recent weak economic data dampened hopes for a sustained economic recovery in the U.K., but the central bank was not expected to announce fresh easing measures.
Sterling was fractionally higher against the euro, with EUR/GBP dipping 0.07% to 0.7984.
Investors were looking ahead to the European Central Bank's policy-setting meeting and President Mario Draghi's press conference later in the day.
Elsewhere, the U.S. was to publish official data on the trade balance as well as the weekly government report on initial jobless claims.