Investing.com - The pound fell to a session low against the U.S. dollar on Thursday, as uncertainty over the outcome of protracted negotiations between Greece and its private creditors on a debt swap deal weighed on risk appetite.
GBP/USD hit 1.5812 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5825, dipping 0.05%.
Cable was likely to find support at 1.5705, Wednesday’s low and resistance at 1.5882, Wednesday’s high and a two-and-a-half month high.
The pound extended losses against the greenback after Eurogroup head Jean-Claude Juncker said talks with private bondholders on debt restructuring plan for Greece were “ultra-difficult”.
Market sentiment had softened earlier as investors remained jittery in the absence of an announcement on a debt writedown deal for Greece.
Earlier in the week, European officials indicated that negotiations with Greece’s private creditors were almost concluded, but concerns have persisted that the debt swap deal will not go far enough to reduce the country’s debt load.
Adding to difficulties, a second bailout and any public sector involvement must also be agreed upon before a final deal can be announced.
In the U.K., data showed that the construction sector expanded in January, albeit at a weaker-than-forecast pace, as growth in new orders slowed and some existing contracts were completed.
The Markit construction Purchasing Managers' Index fell to 51.4 from a reading of 53.2 in December. Economists had expected the index to ease down to 52.9 last month.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.40% to hit 0.8278.
Later in the day, Federal Reserve Chairman Ben Bernanke was to testify before the House of Representatives budget committee. The U.S. was also to produce government data on initial jobless claims.
GBP/USD hit 1.5812 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5825, dipping 0.05%.
Cable was likely to find support at 1.5705, Wednesday’s low and resistance at 1.5882, Wednesday’s high and a two-and-a-half month high.
The pound extended losses against the greenback after Eurogroup head Jean-Claude Juncker said talks with private bondholders on debt restructuring plan for Greece were “ultra-difficult”.
Market sentiment had softened earlier as investors remained jittery in the absence of an announcement on a debt writedown deal for Greece.
Earlier in the week, European officials indicated that negotiations with Greece’s private creditors were almost concluded, but concerns have persisted that the debt swap deal will not go far enough to reduce the country’s debt load.
Adding to difficulties, a second bailout and any public sector involvement must also be agreed upon before a final deal can be announced.
In the U.K., data showed that the construction sector expanded in January, albeit at a weaker-than-forecast pace, as growth in new orders slowed and some existing contracts were completed.
The Markit construction Purchasing Managers' Index fell to 51.4 from a reading of 53.2 in December. Economists had expected the index to ease down to 52.9 last month.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.40% to hit 0.8278.
Later in the day, Federal Reserve Chairman Ben Bernanke was to testify before the House of Representatives budget committee. The U.S. was also to produce government data on initial jobless claims.