Investing.com - The pound fell to a more than one-month low against the U.S. dollar on Thursday, as the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing, while concerns over the debt crisis in the euro zone persisted.
GBP/USD hit 1.5450 during European morning trade, the pair’s lowest since June 8; the pair subsequently consolidated at 1.5460, falling 0.28%.
Cable was likely to find support at 1.5371, the low of June 6 and short-term resistance at 1.5533, the high of July 9.
In the minutes of its June policy-setting meeting, the Fed indicated that the U.S. economy would have to worsen further before the central bank implements additional easing measures, sending the greenback broadly higher.
While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Meanwhile, risk sentiment also remained under pressure after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the pound was steady against the euro with EUR/GBP adding 0.04%, to hit 0.7899.
Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.
GBP/USD hit 1.5450 during European morning trade, the pair’s lowest since June 8; the pair subsequently consolidated at 1.5460, falling 0.28%.
Cable was likely to find support at 1.5371, the low of June 6 and short-term resistance at 1.5533, the high of July 9.
In the minutes of its June policy-setting meeting, the Fed indicated that the U.S. economy would have to worsen further before the central bank implements additional easing measures, sending the greenback broadly higher.
While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Meanwhile, risk sentiment also remained under pressure after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the pound was steady against the euro with EUR/GBP adding 0.04%, to hit 0.7899.
Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.