Investing.com - The pound edged higher against the U.S. dollar on quiet Wednesday, but gains were limited as investors continued to focus on developments in the euro zone amid sustained concerns over the outlook for global economic growth.
GBP/USD hit 1.6034 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6015, adding 0.07%.
Cable was likely to find support at 1.5960, the low of September 10 and resistance at 1.6083, the high of September 11.
Market sentiment remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
Sentiment on sterling also remained vulnerable after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
The pound was little changed against the euro with EUR/GBP easing up 0.01, to hit 0.8052.
Also Wednesday, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.
GBP/USD hit 1.6034 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6015, adding 0.07%.
Cable was likely to find support at 1.5960, the low of September 10 and resistance at 1.6083, the high of September 11.
Market sentiment remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
Sentiment on sterling also remained vulnerable after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
The pound was little changed against the euro with EUR/GBP easing up 0.01, to hit 0.8052.
Also Wednesday, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.