Investing.com - The pound erased gains against the U.S. dollar on Tuesday, falling to a one-month low as global growth concerns continued to dampen investor confidence amid ongoing worries over the handling of the debt crisis in the euro zone.
GBP/USD pulled away from 1.6046, the daily high, to hit 1.5995 during U.S. morning trade, shedding 0.19%.
Cable was likely to find support at 1.5923, the low of September 7 and resistance at 1.6083, the high of September 11.
Market sentiment weakened after the International Monetary Fund cut its global growth forecasts and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.
Investors also remained cautious amid uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Uncertainty over whether international creditors will extend loans to Greece also weighed, as the country struggles to meet deficit reduction targets.
Separately, European Central Bank President Mario Draghi earlier reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Elsewhere, the pound was higher against the euro with EUR/GBP dropping 0.46%, to hit 0.8054.
Also Tuesday, the Office for National Statistics said manufacturing production in the U.K. fell by 1.1% in August, more than expectations for a 0.6% drop.
The ONS said industrial production declined by 0.5% in August, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
GBP/USD pulled away from 1.6046, the daily high, to hit 1.5995 during U.S. morning trade, shedding 0.19%.
Cable was likely to find support at 1.5923, the low of September 7 and resistance at 1.6083, the high of September 11.
Market sentiment weakened after the International Monetary Fund cut its global growth forecasts and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.
Investors also remained cautious amid uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Uncertainty over whether international creditors will extend loans to Greece also weighed, as the country struggles to meet deficit reduction targets.
Separately, European Central Bank President Mario Draghi earlier reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Elsewhere, the pound was higher against the euro with EUR/GBP dropping 0.46%, to hit 0.8054.
Also Tuesday, the Office for National Statistics said manufacturing production in the U.K. fell by 1.1% in August, more than expectations for a 0.6% drop.
The ONS said industrial production declined by 0.5% in August, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.