Investing.com - The pound remained lower against the U.S. dollar on Thursday, as uncertainty over a second Greek bailout weighed, but sterling remained supported by declining expectations for more monetary easing by the Bank of England.
GBP/USD hit 1.5660 during European afternoon trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.5670, slipping 0.14%.
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 a delay on a second bailout for Greece escalated after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision about the issue.
European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Risk appetite was also hit after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
But the pound’s losses were limited after the BoE’s quarterly inflation report on Tuesday revised up the bank’s two-year inflation forecast, dampening expectations for more quantitative easing measures.
Earlier Thursday, a report by lender Nationwide showed British consumer confidence climbed to its highest level in five months in January as people's view of the outlook six months ahead grew more upbeat.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.54% to hit 0.8280.
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, Federal Reserve Chairman Ben Bernanke was due to speak.
GBP/USD hit 1.5660 during European afternoon trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 1.5670, slipping 0.14%.
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 a delay on a second bailout for Greece escalated after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision about the issue.
European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Risk appetite was also hit after ratings agency Moody's warned that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
But the pound’s losses were limited after the BoE’s quarterly inflation report on Tuesday revised up the bank’s two-year inflation forecast, dampening expectations for more quantitative easing measures.
Earlier Thursday, a report by lender Nationwide showed British consumer confidence climbed to its highest level in five months in January as people's view of the outlook six months ahead grew more upbeat.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.54% to hit 0.8280.
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, Federal Reserve Chairman Ben Bernanke was due to speak.