Investing.com – The pound slipped to a four-day low against the U.S. dollar on Thursday, after the U.K. government cut its growth forecasts for 2011 and markets pared back expectations for a near-term rate hike by the Bank of England.
GBP/USD hit 1.6192 during European morning trade, the pair’s lowest since March 18; the pair subsequently consolidated at 1.6226, dipping 0.06%.
Cable was likely to find support at 1.6059, the low of March 18 and resistance at 1.6384, Wednesday’s high.
On Wednesday, British Finance Minister George Osborne cut the 2011 growth forecast to 1.7% from 2.1% previously in his budget.
Meanwhile, the minutes of the BoE’s most recent policy setting meeting showed the bank saw “merit in waiting” to examine the effect of higher oil prices, dampening speculation over an interest rate hike by the bank in the coming months.
The pound was also down against the euro, with EUR/GBP rising 0.19% to hit 0.8694.
Later in the day, the U.K. was to publish official data on retail sales while the U.S. was to release government data on initial jobless claims and durable goods orders.
GBP/USD hit 1.6192 during European morning trade, the pair’s lowest since March 18; the pair subsequently consolidated at 1.6226, dipping 0.06%.
Cable was likely to find support at 1.6059, the low of March 18 and resistance at 1.6384, Wednesday’s high.
On Wednesday, British Finance Minister George Osborne cut the 2011 growth forecast to 1.7% from 2.1% previously in his budget.
Meanwhile, the minutes of the BoE’s most recent policy setting meeting showed the bank saw “merit in waiting” to examine the effect of higher oil prices, dampening speculation over an interest rate hike by the bank in the coming months.
The pound was also down against the euro, with EUR/GBP rising 0.19% to hit 0.8694.
Later in the day, the U.K. was to publish official data on retail sales while the U.S. was to release government data on initial jobless claims and durable goods orders.