Investing.com - The pound was little changed against the U.S. dollar in quiet trade on Wednesday, as investors remained cautious amid ongoing uncertainty over a possible bailout for Spain, while worries over the economic outlook also weighed.
GBP/USD hit 1.6026 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6011, inching up 0.05%.
Cable was likely to find near-term support at 1.5975, the session low and a one-month low and resistance at 1.6045, Tuesday’s high.
Investors remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
The pound remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
On Tuesday, the IMF said the U.K. economy would contract by 0.4% in 2012, compared to its July forecast for 0.2% growth.
Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8048.
Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.
GBP/USD hit 1.6026 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6011, inching up 0.05%.
Cable was likely to find near-term support at 1.5975, the session low and a one-month low and resistance at 1.6045, Tuesday’s high.
Investors remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
The pound remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.
On Tuesday, the IMF said the U.K. economy would contract by 0.4% in 2012, compared to its July forecast for 0.2% growth.
Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8048.
Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.