Investing.com - The pound was lower against the U.S. dollar on Thursday, as concerns over fresh delays on a second bailout for Greece and the possibility of further downgrades for European banks weighed on demand for riskier assets.
GBP/USD hit 1.5660 during European morning trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.5671, slipping 0.13%.
Cable was likely to find short-term support at 1.5644, Tuesday’s low and a more than two-week low and resistance at 1.5735, Wednesday’s high.
Concerns over Greece escalated after it emerged that European Union officials are considering a delay to all or part of Greece's second bailout package until after a general election, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20.
Market sentiment was also hit after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, including the U.K., citing banks' vulnerability to the sovereign debt crisis in the euro zone.
Meanwhile, the dollar found support after the minutes of the Federal Reserve’s January policy meeting showed that policymakers were still divided about whether to launch fresh easing measures to shore up growth, but were still actively considering such a move.
The pound was higher against the euro, with EUR/GBP shedding 0.42% to hit 0.8290.
Later in the day, the U.S. was to publish official data on building permits and housing starts, as well as reports on producer price inflation and unemployment claims. In addition, Fed Chairman Ben Bernanke was due to speak.
GBP/USD hit 1.5660 during European morning trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.5671, slipping 0.13%.
Cable was likely to find short-term support at 1.5644, Tuesday’s low and a more than two-week low and resistance at 1.5735, Wednesday’s high.
Concerns over Greece escalated after it emerged that European Union officials are considering a delay to all or part of Greece's second bailout package until after a general election, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20.
Market sentiment was also hit after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, including the U.K., citing banks' vulnerability to the sovereign debt crisis in the euro zone.
Meanwhile, the dollar found support after the minutes of the Federal Reserve’s January policy meeting showed that policymakers were still divided about whether to launch fresh easing measures to shore up growth, but were still actively considering such a move.
The pound was higher against the euro, with EUR/GBP shedding 0.42% to hit 0.8290.
Later in the day, the U.S. was to publish official data on building permits and housing starts, as well as reports on producer price inflation and unemployment claims. In addition, Fed Chairman Ben Bernanke was due to speak.