Investing.com - The pound slid to a session low against the U.S. dollar on Wednesday, amid concerns that the European Central Bank could disappoint expectations for action to stem the debt crisis in the region, ahead of its upcoming policy meeting.
GBP/USD hit 1.5848 during European morning trade, the pair’s lowest since August 31; the pair subsequently consolidated at 1.5847, edging down 0.14%.
Cable was likely to find support at 1.5777, the low of August 31 and resistance at 1.5908, Tuesday’s high and an eight-day high.
Market sentiment was dented by growing doubts over whether the ECB will announce more details of measures to help stabilize the region’s sovereign debt markets after its policy meeting on Thursday.
The pound remained supported after stronger-than-forecast service sector data for August fuelled hopes that the Bank of England would refrain from implementing further stimulus measures at its policy meeting on Thursday.
Markit said its services purchasing managers’ index rose to 53.7, the highest level since March, from a reading of 51.0 in July.
The data was inadvertently published by Reuters on Tuesday, a day ahead of schedule.
The data came after a report showing that the U.K.’s construction sector contracted in August, as new orders fell at the sharpest rate since April 2009.
Markit said the U.K. construction PMI fell to 49.0 in August from 50.9 in July, compared to expectations for a reading of 50.0.
The pound was higher against the euro, with EUR/GBP down 0.27% to 0.7898.
Later Wednesday, the U.S. was to release revised data on nonfarm productivity, while the euro zone was to produce official data on retail sales.
GBP/USD hit 1.5848 during European morning trade, the pair’s lowest since August 31; the pair subsequently consolidated at 1.5847, edging down 0.14%.
Cable was likely to find support at 1.5777, the low of August 31 and resistance at 1.5908, Tuesday’s high and an eight-day high.
Market sentiment was dented by growing doubts over whether the ECB will announce more details of measures to help stabilize the region’s sovereign debt markets after its policy meeting on Thursday.
The pound remained supported after stronger-than-forecast service sector data for August fuelled hopes that the Bank of England would refrain from implementing further stimulus measures at its policy meeting on Thursday.
Markit said its services purchasing managers’ index rose to 53.7, the highest level since March, from a reading of 51.0 in July.
The data was inadvertently published by Reuters on Tuesday, a day ahead of schedule.
The data came after a report showing that the U.K.’s construction sector contracted in August, as new orders fell at the sharpest rate since April 2009.
Markit said the U.K. construction PMI fell to 49.0 in August from 50.9 in July, compared to expectations for a reading of 50.0.
The pound was higher against the euro, with EUR/GBP down 0.27% to 0.7898.
Later Wednesday, the U.S. was to release revised data on nonfarm productivity, while the euro zone was to produce official data on retail sales.