Investing.com - The pound eased off a one-month low against the U.S. dollar on Thursday, but gains looked likely to remain limited as a combination of concerns over global growth and uncertainty over Spain weighed on market sentiment.
GBP/USD hit 1.6029 during European morning trade, the session high; the pair subsequently consolidated at 1.6018, easing up 0.08%.
Cable was likely to find near-term support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6082, the high of September 11.
Pressure on Spain to seek a bailout mounted after ratings agency Standard & Poor’s cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.
Sterling 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.
The pound was little changed against the euro, with EUR/GBP dipping 0.02% to 0.8041.
Later Thursday, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.
GBP/USD hit 1.6029 during European morning trade, the session high; the pair subsequently consolidated at 1.6018, easing up 0.08%.
Cable was likely to find near-term support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6082, the high of September 11.
Pressure on Spain to seek a bailout mounted after ratings agency Standard & Poor’s cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.
Sterling 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.
The pound was little changed against the euro, with EUR/GBP dipping 0.02% to 0.8041.
Later Thursday, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.