Investing.com – The pound was lower against the U.S. dollar on Wednesday, as investors remained cautious over progress on resolving the euro zone’s debt crisis, while speculation over a bailout for Italy lent support.
GBP/USD hit 1.5531 during early European trade, the day’s low; the pair subsequently consolidated at 1.5552, shedding 0.27%.
Cable was likely to find support at 1.5458, Monday’s low and an almost seven-week low and resistance at 1.5628, the days high.
News that euro zone finance ministers approved measures to increase the lending capacity of the region’s bailout fund, the European Financial Stability Facility on Tuesday did little to reassure markets.
The ministers also signed off on Greece’s next tranche of bailout aid.
Sentiment was also weighed after ratings agency Standard & Poor’s downgraded its ratings on 15 global banks on Tuesday.
Meanwhile, speculation over a bailout for Italy continued after senior euro zone and International Monetary Fund officials said late Tuesday that talks on a EUR400 billion rescue deal may start next month.
The pound was fractionally lower against the euro, with EUR/GBP easing up 0.06% to hit 0.8540.
Also Wednesday, a report by Gfk showed that consumer confidence in the U.K. edged up slightly this month, but remained close to a two-year low and the outlook remained downbeat.
The data came one day after Chancellor George Osborne said the U.K. economy was now expected to grow just 0.7% in 2012, down from a March budget forecast of 2.5% growth.
GBP/USD hit 1.5531 during early European trade, the day’s low; the pair subsequently consolidated at 1.5552, shedding 0.27%.
Cable was likely to find support at 1.5458, Monday’s low and an almost seven-week low and resistance at 1.5628, the days high.
News that euro zone finance ministers approved measures to increase the lending capacity of the region’s bailout fund, the European Financial Stability Facility on Tuesday did little to reassure markets.
The ministers also signed off on Greece’s next tranche of bailout aid.
Sentiment was also weighed after ratings agency Standard & Poor’s downgraded its ratings on 15 global banks on Tuesday.
Meanwhile, speculation over a bailout for Italy continued after senior euro zone and International Monetary Fund officials said late Tuesday that talks on a EUR400 billion rescue deal may start next month.
The pound was fractionally lower against the euro, with EUR/GBP easing up 0.06% to hit 0.8540.
Also Wednesday, a report by Gfk showed that consumer confidence in the U.K. edged up slightly this month, but remained close to a two-year low and the outlook remained downbeat.
The data came one day after Chancellor George Osborne said the U.K. economy was now expected to grow just 0.7% in 2012, down from a March budget forecast of 2.5% growth.