Investing.com – The pound edged down against the U.S. dollar on Thursday, falling to hit a daily low, as risk aversion mounted ahead of a pivotal policy setting meeting of the European Central Bank.
GBP/USD hit 1.5596 during late Asian trade, the daily high, the pair subsequently consolidated at 1.5610, slipping 0.04%.
Cable was likely to find support at 1.5546, Wednesday’s low and resistance at 1.5771, the high of November 26.
As the debt crisis in the euro zone threatened to spill over into Spain, expectations mounted that the ECB would announce an expansion of its bond-buying program or delay the withdrawal of unlimited liquidity support for banks, after its policy meeting on Thursday.
On Wednesday, The Wall Street Journal reported that Italy, Spain and Portugal have all pushed for strong and decisive action from the central bank.
However Germany remains strongly opposed to any expansion of the banks bond purchasing program. Axel Weber, the German central bank chairman, has been the most vocal opponent of the ECB's bond-buying, saying it blurs the line between fiscal and monetary policy.
The pound was also down against the euro, with EUR/GBP easing up 0.09% to hit 0.8417.
Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference. Also Thursday, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.
GBP/USD hit 1.5596 during late Asian trade, the daily high, the pair subsequently consolidated at 1.5610, slipping 0.04%.
Cable was likely to find support at 1.5546, Wednesday’s low and resistance at 1.5771, the high of November 26.
As the debt crisis in the euro zone threatened to spill over into Spain, expectations mounted that the ECB would announce an expansion of its bond-buying program or delay the withdrawal of unlimited liquidity support for banks, after its policy meeting on Thursday.
On Wednesday, The Wall Street Journal reported that Italy, Spain and Portugal have all pushed for strong and decisive action from the central bank.
However Germany remains strongly opposed to any expansion of the banks bond purchasing program. Axel Weber, the German central bank chairman, has been the most vocal opponent of the ECB's bond-buying, saying it blurs the line between fiscal and monetary policy.
The pound was also down against the euro, with EUR/GBP easing up 0.09% to hit 0.8417.
Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference. Also Thursday, the U.S. was to publish key weekly data on initial jobless claims as well as a report on pending home sales.