Investing.com – The pound edged higher against the U.S. dollar in subdued trade on Thursday, following a selloff in riskier assets the day before after Italian borrowing costs spiked to levels widely perceived as unsustainable.
GBP/USD hit 1.5940 during European morning trade, the session high; the pair subsequently consolidated at 1.5925, inching up 0.07%.
Cable was likely to find short-term support at 1.5875, the low of November 3 and resistance at 1.6119, Wednesday’s high.
The pound fell more than 1% against the greenback on Wednesday as risk appetite was hammered after the yield on 10-year Italian government bonds rose above 7%, the level at which Greece, Ireland and Portugal sought international bailouts.
Earlier Thursday, International Monetary Fund head Christine Lagarde called for political clarity to be restored in Italy and Greece in order to calm market volatility.
Meanwhile, officials in Greece were continuing with talks aimed at appointing a new coalition government.
Burt the pound was lower against the euro, with EUR/GBP rising 0.14% to hit 0.8522.
Later in the day, the Bank of England was to announce its benchmark interest rate. Elsewhere, Italy was to auction EUR5 billion in one-year Treasury bills, while the U.S. was to release official data on jobless claims as well as a report on the trade balance.
GBP/USD hit 1.5940 during European morning trade, the session high; the pair subsequently consolidated at 1.5925, inching up 0.07%.
Cable was likely to find short-term support at 1.5875, the low of November 3 and resistance at 1.6119, Wednesday’s high.
The pound fell more than 1% against the greenback on Wednesday as risk appetite was hammered after the yield on 10-year Italian government bonds rose above 7%, the level at which Greece, Ireland and Portugal sought international bailouts.
Earlier Thursday, International Monetary Fund head Christine Lagarde called for political clarity to be restored in Italy and Greece in order to calm market volatility.
Meanwhile, officials in Greece were continuing with talks aimed at appointing a new coalition government.
Burt the pound was lower against the euro, with EUR/GBP rising 0.14% to hit 0.8522.
Later in the day, the Bank of England was to announce its benchmark interest rate. Elsewhere, Italy was to auction EUR5 billion in one-year Treasury bills, while the U.S. was to release official data on jobless claims as well as a report on the trade balance.