Investing.com - The pound was lower against the U.S. dollar on Wednesday, ahead of the release of U.K. data on fourth quarter economic growth and the minutes of this month’s Bank of England policy meeting.
GBP/USD hit 1.5556 during European morning trade, the daily low; the pair subsequently consolidated at 1.5554, shedding 0.44%.
Cable was likely to find support at 1.5449, the low of January 20 and resistance at 1.5627, the session high and an almost three-week high.
Demand for the pound was hit by concerns that weak gross domestic product data could prompt further monetary easing from the BoE, as harsh government austerity cuts and the debt crisis in the euro zone continue to weigh on the U.K. economy.
On Tuesday, BoE Governor Mervyn King said recent falls in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
King also said that growth in the global economy was likely to slow and warned that the U.K. faces an "arduous, long and uneven" economic recovery.
The pound was also lower against the euro, with EUR/GBP rising 0.40% to hit 0.8375.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.
GBP/USD hit 1.5556 during European morning trade, the daily low; the pair subsequently consolidated at 1.5554, shedding 0.44%.
Cable was likely to find support at 1.5449, the low of January 20 and resistance at 1.5627, the session high and an almost three-week high.
Demand for the pound was hit by concerns that weak gross domestic product data could prompt further monetary easing from the BoE, as harsh government austerity cuts and the debt crisis in the euro zone continue to weigh on the U.K. economy.
On Tuesday, BoE Governor Mervyn King said recent falls in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
King also said that growth in the global economy was likely to slow and warned that the U.K. faces an "arduous, long and uneven" economic recovery.
The pound was also lower against the euro, with EUR/GBP rising 0.40% to hit 0.8375.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.