Investing.com - The pound was edged higher against the U.S. dollar on Thursday, but market uncertainty ahead of French and Spanish bond auctions weighed on demand for riskier assets.
GBP/USD hit 1.5690 during European morning trade, the pair's lowest since October 20; the pair subsequently consolidated at 1.5751, rising 0.14%.
Cable was likely to find support at 1.5631, the low of October 18 and resistance at 1.5846, the high of October 19.
The pound came under pressure as Spain was due to auction up to EUR4 billion of 10-year bonds and Madrid was expected to face its highest borrowing cost since the inception of the single currency.
France was to auction up to EUR7 billion in government bonds after borrowing costs rose to a euro-era high on Wednesday as European Central Bank buying of Italian and Spanish debt failed to reassure markets.
Investors were also cautious after ratings agency Fitch warned about the potential adverse impact of euro zone’s debt crisis on the U.S. banking sector shortly after Moody’s downgraded the ratings of 12 German public-sector banks.
Earlier Thursday, the Nationwide Building Society's index of U.K. consumer
confidence fell to an all-time low in October.
The data came a day after the Bank of England’s quarterly Inflation Report said economic growth will be "significantly weaker" than forecast in August and indicated that the bank may have to add to its GBP275 billion asset purchase program as the economic outlook deteriorates.
The pound was also steady against the euro with EUR/GBP inching up 0.08%, to trade at 0.8565.
Later in the day, the U.K. was to release official data on retail sales, while the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.
GBP/USD hit 1.5690 during European morning trade, the pair's lowest since October 20; the pair subsequently consolidated at 1.5751, rising 0.14%.
Cable was likely to find support at 1.5631, the low of October 18 and resistance at 1.5846, the high of October 19.
The pound came under pressure as Spain was due to auction up to EUR4 billion of 10-year bonds and Madrid was expected to face its highest borrowing cost since the inception of the single currency.
France was to auction up to EUR7 billion in government bonds after borrowing costs rose to a euro-era high on Wednesday as European Central Bank buying of Italian and Spanish debt failed to reassure markets.
Investors were also cautious after ratings agency Fitch warned about the potential adverse impact of euro zone’s debt crisis on the U.S. banking sector shortly after Moody’s downgraded the ratings of 12 German public-sector banks.
Earlier Thursday, the Nationwide Building Society's index of U.K. consumer
confidence fell to an all-time low in October.
The data came a day after the Bank of England’s quarterly Inflation Report said economic growth will be "significantly weaker" than forecast in August and indicated that the bank may have to add to its GBP275 billion asset purchase program as the economic outlook deteriorates.
The pound was also steady against the euro with EUR/GBP inching up 0.08%, to trade at 0.8565.
Later in the day, the U.K. was to release official data on retail sales, while the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.