Investing.com - The pound edged lower against the U.S. dollar on Thursday, as investors awaited the release of key data on manufacturing production in the U.K. as well as the Bank of England’s rate statement later in the day, while concerns over Greece’s political turmoil remained.
GBP/USD hit 1.6114 during European morning trade, the daily low; the pair subsequently consolidated at 1.6104, edging down 0.14%.
Cable was likely to find support at 1.6037, the low of April 20 and resistance at 1.6163, the high of April 24.
Market sentiment came under pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
Chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Meanwhile, investors eyed developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Sentiment on the sterling also remained vulnerable after data showed on Wednesday that U.K. retail sales posted their biggest fall in more than a year in April, as unseasonably wet weather weighed on sales of summer clothing and outdoor goods.
The pound was lower against the euro but still trading close to a three-and-a-half year high with EUR/GBP adding 0.28%, to hit 0.8039.
Later in the day, the U.K. was to publish official data on manufacturing production, as well as a monthly estimate of gross domestic product by the National Institute of Economic and Social Research, while the BoE was to announce its benchmark interest rate.
The U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.
GBP/USD hit 1.6114 during European morning trade, the daily low; the pair subsequently consolidated at 1.6104, edging down 0.14%.
Cable was likely to find support at 1.6037, the low of April 20 and resistance at 1.6163, the high of April 24.
Market sentiment came under pressure after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
Chances of any deal on a coalition government looked slim after two failed attempts, making new elections in three to four weeks the most likely outcome and fueling fears that Greece will not have a government in place in time to secure its next tranche of international aid next month.
Meanwhile, investors eyed developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Sentiment on the sterling also remained vulnerable after data showed on Wednesday that U.K. retail sales posted their biggest fall in more than a year in April, as unseasonably wet weather weighed on sales of summer clothing and outdoor goods.
The pound was lower against the euro but still trading close to a three-and-a-half year high with EUR/GBP adding 0.28%, to hit 0.8039.
Later in the day, the U.K. was to publish official data on manufacturing production, as well as a monthly estimate of gross domestic product by the National Institute of Economic and Social Research, while the BoE was to announce its benchmark interest rate.
The U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.