Investing.com - The pound erased early gains against the U.S. dollar on Wednesday, ahead of the release of the Bank of England’s latest inflation report while lingering concerns over the risk of a Greek default also weighed.
GBP/USD pulled back from 1.5736, the session high, to hit 1.5681 during early European trade, dipping 0.09%.
Cable was likely to find support at 1.5644, Tuesday’s low and a two-week low and resistance at 1.5769, Tuesday’s high.
The pound weakened ahead of the release of the inflation report and after ratings agency Moody's warned Tuesday of a possible ratings downgrade, citing the U.K.'s "materially weaker" growth prospects and risks from the debt crisis in the euro zone.
The report was expected to indicate whether policymakers are likely to implement further monetary stimulus measures in the coming months after the central bank increased quantitative easing last week.
Sterling was higher against the greenback earlier after the head of China’s central bank said he believes the euro zone’s debt crisis can be solved and said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
The pound was lower against the euro, with EUR/GBP rising 0.30% to hit 0.8392.
Sentiment on the euro remained supported by hopes that Greece can deliver on a pledge to implement austerity measures approved in a parliamentary vote on Sunday.
Euro zone finance ministers abandoned plans for a meeting in Brussels that had been called to sign off on Greece’s bailout later in the day and were expected to hold a teleconference instead.
GBP/USD pulled back from 1.5736, the session high, to hit 1.5681 during early European trade, dipping 0.09%.
Cable was likely to find support at 1.5644, Tuesday’s low and a two-week low and resistance at 1.5769, Tuesday’s high.
The pound weakened ahead of the release of the inflation report and after ratings agency Moody's warned Tuesday of a possible ratings downgrade, citing the U.K.'s "materially weaker" growth prospects and risks from the debt crisis in the euro zone.
The report was expected to indicate whether policymakers are likely to implement further monetary stimulus measures in the coming months after the central bank increased quantitative easing last week.
Sterling was higher against the greenback earlier after the head of China’s central bank said he believes the euro zone’s debt crisis can be solved and said that China will become more involved in efforts to resolve the crisis through mechanisms such as the European Financial Stability Facility.
The pound was lower against the euro, with EUR/GBP rising 0.30% to hit 0.8392.
Sentiment on the euro remained supported by hopes that Greece can deliver on a pledge to implement austerity measures approved in a parliamentary vote on Sunday.
Euro zone finance ministers abandoned plans for a meeting in Brussels that had been called to sign off on Greece’s bailout later in the day and were expected to hold a teleconference instead.