Investing.com - The pound remained lower against the U.S. dollar on Thursday, trading close to a two-month low after downbeat U.S. manufacturing data but sustained euro zone concerns and expectations for more easing steps by the Bank of England continued to weigh on the pound.
GBP/USD hit 1.5792 during U.S. morning trade, the pair’s lowest since March 22; the pair subsequently consolidated at 1.5809, dropping 0.63%.
Cable was likely to find support at 1.5723, the low of March 8 and resistance at 1.5931, the session high.
The Federal Reserve Bank of Philadelphia said that its manufacturing index dropped by 14.3 points to minus 5.8 in May, contracting for the first time in eight months, after a reading of 8.5 in April. Analysts had expected the index to rise by 1.5 points to 10.0 in May.
The data came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 12 held steady at 370,000, confounding expectations for a decline to 365,000.
Market sentiment was hit earlier as shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
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 also 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 also lower against the euro with EUR/GBP rising 0.53%, to hit 0.8034.
Also Thursday, 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.
GBP/USD hit 1.5792 during U.S. morning trade, the pair’s lowest since March 22; the pair subsequently consolidated at 1.5809, dropping 0.63%.
Cable was likely to find support at 1.5723, the low of March 8 and resistance at 1.5931, the session high.
The Federal Reserve Bank of Philadelphia said that its manufacturing index dropped by 14.3 points to minus 5.8 in May, contracting for the first time in eight months, after a reading of 8.5 in April. Analysts had expected the index to rise by 1.5 points to 10.0 in May.
The data came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 12 held steady at 370,000, confounding expectations for a decline to 365,000.
Market sentiment was hit earlier 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.
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 also 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 also lower against the euro with EUR/GBP rising 0.53%, to hit 0.8034.
Also Thursday, 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.