Investing.com – The pound pared losses against the U.S. dollar on Thursday, having earlier slipped to a daily low after Japan’s credit rating was downgraded by Standard and Poor’s.
GBP/USD clawed back up from 1.588, the daily low to hit 1.5929 during European morning trade, slipping 0.03%.
Cable was likely to find support at 1.5768, Wednesday’s low and resistance at 1.6016, Tuesday’s high.
Earlier in the day, S&P lowered its credit rating on Japan to AA- from AA, citing concerns over the country’s high fiscal deficits.
However the pound was supported after the Federal Reserve said Wednesday it was holding interest rates steady and repeated that rates would remain exceptionally low for an extended period.
The Fed also indicated that it intended to see its USD600 billion bond-purchasing plan through to completion in June.
“Economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions", the bank said.
Meanwhile, the pound was higher against the euro with EUR/GBP shedding 0.21% to hit 0.8587.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales while the U.K. was to publish industry data on retail sales.
GBP/USD clawed back up from 1.588, the daily low to hit 1.5929 during European morning trade, slipping 0.03%.
Cable was likely to find support at 1.5768, Wednesday’s low and resistance at 1.6016, Tuesday’s high.
Earlier in the day, S&P lowered its credit rating on Japan to AA- from AA, citing concerns over the country’s high fiscal deficits.
However the pound was supported after the Federal Reserve said Wednesday it was holding interest rates steady and repeated that rates would remain exceptionally low for an extended period.
The Fed also indicated that it intended to see its USD600 billion bond-purchasing plan through to completion in June.
“Economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions", the bank said.
Meanwhile, the pound was higher against the euro with EUR/GBP shedding 0.21% to hit 0.8587.
Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales while the U.K. was to publish industry data on retail sales.