Investing.com - The pound fell to a one-month low against the U.S. dollar on Wednesday, as fears over the growing risk of a Greek exit from the euro zone bolstered safe haven demand for the greenback.
GBP/USD hit 1.5934 during European morning trade, the pair’s lowest since April 18; the pair subsequently consolidated at 1.5952, shedding 0.25%.
Cable was likely to find support at 1.5861, the low of April 17 and resistance at 1.5998, the session high.
Greek cross party talks failed to reach an agreement to form a government on Tuesday, following a May 6 election which left no party with a clear majority.
Greek politicians were to meet later Wednesday to appoint a caretaker government to lead the country until fresh elections can be held in June.
Hoverer, uncertainty over the outcome of the next elections fueled speculation that the country will not be able to access further financial aid and may eventually be forced out of the euro zone.
Meanwhile, investors were looking ahead to the Bank of England’s quarterly inflation report later in the day, amid speculation over whether the central bank will implement further stimulus measures to support the recession hit U.K. economy.
The pound was trading close to a three-and-a-half year high against the euro, with EUR/GBP inching up 0.02% to trade at 0.7962.
Later Wednesday, the U.K. was to release government data on employment change and the unemployment rate, ahead of the BoE inflation report.
The U.S. was to produce official data on building permits and housing starts, followed by reports on the capacity utilization rate and industrial production. In addition, the Federal Reserve was to publish the minutes of its most recent policy meeting.
GBP/USD hit 1.5934 during European morning trade, the pair’s lowest since April 18; the pair subsequently consolidated at 1.5952, shedding 0.25%.
Cable was likely to find support at 1.5861, the low of April 17 and resistance at 1.5998, the session high.
Greek cross party talks failed to reach an agreement to form a government on Tuesday, following a May 6 election which left no party with a clear majority.
Greek politicians were to meet later Wednesday to appoint a caretaker government to lead the country until fresh elections can be held in June.
Hoverer, uncertainty over the outcome of the next elections fueled speculation that the country will not be able to access further financial aid and may eventually be forced out of the euro zone.
Meanwhile, investors were looking ahead to the Bank of England’s quarterly inflation report later in the day, amid speculation over whether the central bank will implement further stimulus measures to support the recession hit U.K. economy.
The pound was trading close to a three-and-a-half year high against the euro, with EUR/GBP inching up 0.02% to trade at 0.7962.
Later Wednesday, the U.K. was to release government data on employment change and the unemployment rate, ahead of the BoE inflation report.
The U.S. was to produce official data on building permits and housing starts, followed by reports on the capacity utilization rate and industrial production. In addition, the Federal Reserve was to publish the minutes of its most recent policy meeting.