Investing.com - The pound was trading close to a one-month low against the U.S. dollar on Thursday, as concerns over the possibility of more easing from the Bank of England weighed, while fears over Greece continued to support safe haven demand.
GBP/USD hit 1.5886 during European morning trade, the pair’s lowest since April 17; the pair subsequently consolidated at 1.5902, dipping 0.04%.
Cable was likely to find support at 1.5818, the low of April 16 and resistance at 1.5998, Wednesday’s high.
The pound remained under pressure after Wednesday’s Bank of England’s quarterly inflation report said inflation will not fall back as quickly as hoped and was likely to remain above the bank’s 2% targeted rate for at least another year.
The BoE also revised down economic growth forecasts, sparking fears that policymakers may implement a fresh round of easing measure to shore up the recession hit U.K. economy.
Meanwhile, concerns over the outlook for Greece continued to weigh on market sentiment after the European Central Bank said it had placed some Greek banks in an emergency liquidity assistance program, as they are severely undercapitalized.
But the dollar remained under pressure after Federal Reserve policymakers said Wednesday that they remain open to further efforts to stimulate the U.S. economy if growth falters or if the risks to the economy became great enough.
The pound was also lower against the euro, with EUR/GBP rising 0.14% to hit 0.8003.
Investors were looking ahead to an auction of Spanish 10-year government bonds later in the day, while the U.S. was to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
GBP/USD hit 1.5886 during European morning trade, the pair’s lowest since April 17; the pair subsequently consolidated at 1.5902, dipping 0.04%.
Cable was likely to find support at 1.5818, the low of April 16 and resistance at 1.5998, Wednesday’s high.
The pound remained under pressure after Wednesday’s Bank of England’s quarterly inflation report said inflation will not fall back as quickly as hoped and was likely to remain above the bank’s 2% targeted rate for at least another year.
The BoE also revised down economic growth forecasts, sparking fears that policymakers may implement a fresh round of easing measure to shore up the recession hit U.K. economy.
Meanwhile, concerns over the outlook for Greece continued to weigh on market sentiment after the European Central Bank said it had placed some Greek banks in an emergency liquidity assistance program, as they are severely undercapitalized.
But the dollar remained under pressure after Federal Reserve policymakers said Wednesday that they remain open to further efforts to stimulate the U.S. economy if growth falters or if the risks to the economy became great enough.
The pound was also lower against the euro, with EUR/GBP rising 0.14% to hit 0.8003.
Investors were looking ahead to an auction of Spanish 10-year government bonds later in the day, while the U.S. was to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.