Investing.com – The pound remained weaker against the U.S. dollar on Thursday, trading close to a one-year low after the Federal Reserve offered a gloomy assessment of the U.S. economy, while fears over fresh easing measures by the Bank of England also weighed.
GBP/USD hit 1.5329 during U.S. morning trade, the pair’s lowest since September 7 2010; the pair subsequently consolidated at 1.5362, down 0.87%.
Cable was likely to find support at 1.5251, the low of July 22, 2010 and resistance at 1.5518, the day’s high.
The pound fell sharply amid widespread risk aversion after the Fed warned of “significant downside risks” facing the U.S. economy following its policy meeting on Wednesday.
The U.S. central bank unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
The announcement came after the minutes of the Bank of England’s September meeting indicated that the bank is leaning towards implementing more monetary easing, possibly as early as next month.
Earlier Thursday, BoE policymaker Adam Posen said concerns that quantitative easing could fuel inflation should not prevent central banks from implementing the policy to boost growth.
Elsewhere, the pound was fractionally lower against the euro, with EUR/GBP easing up 0.08% to hit 0.8765.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 9,000 to 423,000, falling short of expectations for a decline to 420,000.
GBP/USD hit 1.5329 during U.S. morning trade, the pair’s lowest since September 7 2010; the pair subsequently consolidated at 1.5362, down 0.87%.
Cable was likely to find support at 1.5251, the low of July 22, 2010 and resistance at 1.5518, the day’s high.
The pound fell sharply amid widespread risk aversion after the Fed warned of “significant downside risks” facing the U.S. economy following its policy meeting on Wednesday.
The U.S. central bank unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
The announcement came after the minutes of the Bank of England’s September meeting indicated that the bank is leaning towards implementing more monetary easing, possibly as early as next month.
Earlier Thursday, BoE policymaker Adam Posen said concerns that quantitative easing could fuel inflation should not prevent central banks from implementing the policy to boost growth.
Elsewhere, the pound was fractionally lower against the euro, with EUR/GBP easing up 0.08% to hit 0.8765.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 9,000 to 423,000, falling short of expectations for a decline to 420,000.