Investing.com - The pound ticked up and down between small gains and losses against the U.S. dollar in cautious trade on Thursday, as investors remained wary amid fresh concerns over the debt crisis in the euro zone.
GBP/USD hit 1.5881 during European morning trade, the session low; the pair subsequently consolidated at 1.5903, easing up 0.10%
Cable was likely to find support at 1.5832, Wednesday’s low and a seven day low ands resistance at 1.5957, the high of March 29.
Market sentiment was hit as the cost of insuring Spain’s debt against default climbed Wednesday, after a poorly received government bond auction fanned concerns that Spain may be the next euro zone member to require a bailout.
The dollar was bolstered by diminished expectations for another round of easing from the Federal Reserve and after data on Wednesday showed that the U.S. private sector added more jobs than expected in March.
But the pound remained supported after upbeat economic data earlier in the week fuelled hopes that the economic recovery in the U.K. is gathering momentum.
Data on Wednesday, showing that the U.K. service sector expanded more-than-forecast in March came after reports showing that the manufacturing and construction sectors also posted solid growth last month.
The pound was slightly higher against the euro, with EUR/GBP slipping 0.10% to hit 0.8262.
Later in the day, the Bank of England was to announce its benchmark interest rate, while the U.S. was to publish government data on unemployment claims.
GBP/USD hit 1.5881 during European morning trade, the session low; the pair subsequently consolidated at 1.5903, easing up 0.10%
Cable was likely to find support at 1.5832, Wednesday’s low and a seven day low ands resistance at 1.5957, the high of March 29.
Market sentiment was hit as the cost of insuring Spain’s debt against default climbed Wednesday, after a poorly received government bond auction fanned concerns that Spain may be the next euro zone member to require a bailout.
The dollar was bolstered by diminished expectations for another round of easing from the Federal Reserve and after data on Wednesday showed that the U.S. private sector added more jobs than expected in March.
But the pound remained supported after upbeat economic data earlier in the week fuelled hopes that the economic recovery in the U.K. is gathering momentum.
Data on Wednesday, showing that the U.K. service sector expanded more-than-forecast in March came after reports showing that the manufacturing and construction sectors also posted solid growth last month.
The pound was slightly higher against the euro, with EUR/GBP slipping 0.10% to hit 0.8262.
Later in the day, the Bank of England was to announce its benchmark interest rate, while the U.S. was to publish government data on unemployment claims.