Investing.com – The pound sank to a 3-week low against the U.S. dollar on Wednesday, as the finance spokesman of the opposition Liberal Democrat party warned that Britain risked a Greek-style financial crisis.
GBP/USD hit 1.5146 during European morning trade, its lowest since April 8; the pair subsequently climbed back up to 1.5183, still shedding 0.54%. Cable was likely to find support at 1.4781, the low of March 1, and resistance at 1.5523, the high of April 15.
Earlier in the day, Vince Cable, the Lib Dem spokesman, told Reuters: "The Greek position is much more serious but is a salutary warning that unless the next government gets seriously to grips with the deficit problems, as we're determined to do, we could have a serious problem."
The ruling Labour party issued a quick dismissal of Cable's comparison, with Business Minister Peter Mandelson branding it "frankly ridiculous."
Meanwhile, sterling also slumped versus the euro, with EUR/GBP advancing 0.71% to hit 0.8692.
Later Wednesday, the U.S. Federal Reserve was set to announce a key interest rate decision and release a statement from its Federal Open Market Committee, which traders were likely to scrutinize for clues to future shifts in monetary policy.
GBP/USD hit 1.5146 during European morning trade, its lowest since April 8; the pair subsequently climbed back up to 1.5183, still shedding 0.54%. Cable was likely to find support at 1.4781, the low of March 1, and resistance at 1.5523, the high of April 15.
Earlier in the day, Vince Cable, the Lib Dem spokesman, told Reuters: "The Greek position is much more serious but is a salutary warning that unless the next government gets seriously to grips with the deficit problems, as we're determined to do, we could have a serious problem."
The ruling Labour party issued a quick dismissal of Cable's comparison, with Business Minister Peter Mandelson branding it "frankly ridiculous."
Meanwhile, sterling also slumped versus the euro, with EUR/GBP advancing 0.71% to hit 0.8692.
Later Wednesday, the U.S. Federal Reserve was set to announce a key interest rate decision and release a statement from its Federal Open Market Committee, which traders were likely to scrutinize for clues to future shifts in monetary policy.