Investing.com - The pound held steady against the U.S. dollar in light trade on Wednesday, as markets remained jittery amid sustained concerns over an economic slowdown in China and ongoing tensions in Ukraine.
GBP/USD hit 1.6568 during U.S. morning trade, the pair's lowest since February 12; the pair subsequently consolidated at 1.6613, easing 0.02%.
Cable was likely to find support at 1.6426, the low from February 12 and resistance at 1.6742, the high from March 5.
Investors remained cautious amid worries over the outlook for China’s economy after data over the weekend showed that exports dropped 18.1% in February and inflation slowed.
Markets were also eyeing the standoff between Russia and the West over Ukraine. Ukraine’s interim Prime Minister Arseniy Yatsenyuk was to travel to the U.S. to meet President Barack Obama on Wednesday, as diplomatic efforts to resolve the crisis continued.
Sterling was lower against the euro, with EUR/GBP adding 0.26% to 0.8364.
Also Wednesday, European Central Bank executive board member Benoit Coeure said the bank did not see an indication of deflation in the euro area, but it remained a possible risk.
The euro strengthened broadly after the ECB left interest rates at a record low 0.25% at its policy meeting last week and implemented no new policy measures to shore up growth, despite forecasting low inflation for years to come.