Investing.com - The pound trimmed losses against the U.S. dollar on Thursday, pulling away from a two-month low but sterling remained under pressure as weak U.K. economic growth data and sustained euro zone debt concerns continued to weigh.
GBP/USD pulled back from 1.5639, the pair’s lowest since March 15, to hit 1.5677 during European afternoon trade, still down 0.14%.
Cable was likely to find support at 1.5602, the low of March 14 and resistance at 1.5747, the high of March 13.
Sentiment found mild support amid reports the European Central Bank could launch fresh liquidity measures, after policymaker Ewald Nowotny said the bank has not yet used its full arsenal. Nowotny also added that Greece will have to implement austerity measures in order to receive further support.
But sterling remained vulnerable after U.K. data showed that the economy shrank more than initially estimated in the first three months of 2012, driven by the sharpest quarterly contraction in construction since the first quarter of 2009.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the first quarter, compared to preliminary estimate of 0.2%.
Analysts expected U.K. GDP to remain unchanged from the preliminary estimate.
Sentiment weakened broadly earlier, after data showed that manufacturing activity in the euro zone contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
A separate report showed that Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Investors were also cautious after Wednesday’s summit of European Union leaders shed no new light on how the euro zone nations intend to tackle their debt crisis, including the threat of Greece's possible exit from the monetary union.
Elsewhere, the pound was steady against the euro with EUR/GBP easing 0.07%, to hit 0.8012.
Later in the day, the U.S. was to release official data on core durable goods orders and unemployment claims, followed by a preliminary report on manufacturing activity.
GBP/USD pulled back from 1.5639, the pair’s lowest since March 15, to hit 1.5677 during European afternoon trade, still down 0.14%.
Cable was likely to find support at 1.5602, the low of March 14 and resistance at 1.5747, the high of March 13.
Sentiment found mild support amid reports the European Central Bank could launch fresh liquidity measures, after policymaker Ewald Nowotny said the bank has not yet used its full arsenal. Nowotny also added that Greece will have to implement austerity measures in order to receive further support.
But sterling remained vulnerable after U.K. data showed that the economy shrank more than initially estimated in the first three months of 2012, driven by the sharpest quarterly contraction in construction since the first quarter of 2009.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the first quarter, compared to preliminary estimate of 0.2%.
Analysts expected U.K. GDP to remain unchanged from the preliminary estimate.
Sentiment weakened broadly earlier, after data showed that manufacturing activity in the euro zone contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
A separate report showed that Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Investors were also cautious after Wednesday’s summit of European Union leaders shed no new light on how the euro zone nations intend to tackle their debt crisis, including the threat of Greece's possible exit from the monetary union.
Elsewhere, the pound was steady against the euro with EUR/GBP easing 0.07%, to hit 0.8012.
Later in the day, the U.S. was to release official data on core durable goods orders and unemployment claims, followed by a preliminary report on manufacturing activity.