Investing.com - The pound extended losses against the U.S. dollar on Thursday, falling to a fresh one-month low as fresh concerns over the crisis in the euro zone and speculation that the Bank of England will resort to new easing measures weighed.
GBP/USD hit 1.5825 during European afternoon trade, the pair’s lowest since April 16; the pair subsequently consolidated at 1.5848, shedding 0.40%.
Cable was likely to find support at 1.5769, the low of March 22 and resistance at 1.5931, the session high.
Market sentiment was hit as shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
Sterling 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.
Elsewhere, the pound was lower against the euro with EUR/GBP edging up 0.11%, to hit 0.8001.
Later in the day, 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 1.5825 during European afternoon trade, the pair’s lowest since April 16; the pair subsequently consolidated at 1.5848, shedding 0.40%.
Cable was likely to find support at 1.5769, the low of March 22 and resistance at 1.5931, the session high.
Market sentiment was hit as shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
Sterling 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.
Elsewhere, the pound was lower against the euro with EUR/GBP edging up 0.11%, to hit 0.8001.
Later in the day, the U.S. was to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.