Investing.com - The pound extended losses against the U.S. dollar on Wednesday, falling to seven-week lows as concerns over the outlook for global growth and uncertainty over Britain’s role in the European Union weighed.
GBP/USD hit 1.5978 during European afternoon trade, the pair’s lowest since November 28; the pair subsequently consolidated at 1.5990, shedding 0.47%.
Cable was likely to find support at 1.5926, the low of November 23 and resistance at 1.6079, the session high.
Market sentiment was hit after the World Bank cut its forecast for global growth to 2.4% this year from 3% in June and warned that developing nations would struggle in 2013.
The Washington-based lender said the U.K. economy would grow by 1.1% this year, well below its June forecast for 1.6% growth.
The report added to fears of a triple-dip recession in the U.K. after a recent string of weak economic data sparked concerns that the economy slid back into a recession in the fourth quarter.
Sentiment on sterling was also hit as political pressure mounted on British Prime Minister David Cameron to renegotiate elements of the country’s EU membership, ahead of a speech on Friday in which he will outline plans to change Britain’s relationship with Europe.
The pound was trading close to nine-month lows against the euro, with EUR/GBP rising 0.21% to 0.8298.
Earlier Wednesday Germany’s government said that the economy will grow just 0.4% in 2013, down from its previous forecast for 1% growth.
Demand for the euro continued to be underpinned after European
Central Bank governing council member Ewald Nowotny said the situation in the euro zone was stabilizing and added that the euro exchange rate was “not a matter of major concern.”
The comments came after Jean-Claude Juncker, the head of the euro group of finance ministers, said Tuesday that the euro’s value was “dangerously high” and posed a threat to the recovery in the euro zone.
The U.S. was to release official data on consumer inflation and industrial production later in the trading day.
GBP/USD hit 1.5978 during European afternoon trade, the pair’s lowest since November 28; the pair subsequently consolidated at 1.5990, shedding 0.47%.
Cable was likely to find support at 1.5926, the low of November 23 and resistance at 1.6079, the session high.
Market sentiment was hit after the World Bank cut its forecast for global growth to 2.4% this year from 3% in June and warned that developing nations would struggle in 2013.
The Washington-based lender said the U.K. economy would grow by 1.1% this year, well below its June forecast for 1.6% growth.
The report added to fears of a triple-dip recession in the U.K. after a recent string of weak economic data sparked concerns that the economy slid back into a recession in the fourth quarter.
Sentiment on sterling was also hit as political pressure mounted on British Prime Minister David Cameron to renegotiate elements of the country’s EU membership, ahead of a speech on Friday in which he will outline plans to change Britain’s relationship with Europe.
The pound was trading close to nine-month lows against the euro, with EUR/GBP rising 0.21% to 0.8298.
Earlier Wednesday Germany’s government said that the economy will grow just 0.4% in 2013, down from its previous forecast for 1% growth.
Demand for the euro continued to be underpinned after European
Central Bank governing council member Ewald Nowotny said the situation in the euro zone was stabilizing and added that the euro exchange rate was “not a matter of major concern.”
The comments came after Jean-Claude Juncker, the head of the euro group of finance ministers, said Tuesday that the euro’s value was “dangerously high” and posed a threat to the recovery in the euro zone.
The U.S. was to release official data on consumer inflation and industrial production later in the trading day.