Investing.com - The pound trimmed losses against the U.S. dollar on Thursday, after the Bank of England kept its benchmark interest rate unchanged in November and announced no change to its asset purchase facility program.
GBP/USD pulled back from 1.5929, the pair’s lowest since October 23, to hit 1.5978 during European afternoon trade, down 0.04% for the day.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.5992, the session high.
The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely expected move.
The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP375 billion.
The decision came after official data last month showed that the U.K. economy exited a recession in the third quarter, although more recent weak data clouded the outlook for a sustained economic recovery.
The pound remained under pressure amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
Meanwhile, investors were looking ahead to the European Central Bank’s policy-setting meeting and President Mario Draghi's press conference later in the session, amid concerns that the economic slump in the euro zone is deepening.
The euro remained broadly lower after a successful Spanish bond auction on Thursday eased pressure on Prime Minister Mariano Rajoy to request a bailout before the end of this year.
Spain sold EUR4.76 billion of three-year, five-year and 20-year bonds, which will allow the country to meet its financing requirements for 2012.
The pound hit a five-week high against the euro, with EUR/GBP down 0.21% to 0.7973.
Later Thursday, the U.S. was to publish official data on the trade balance as well as the weekly government report on initial jobless claims.
GBP/USD pulled back from 1.5929, the pair’s lowest since October 23, to hit 1.5978 during European afternoon trade, down 0.04% for the day.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.5992, the session high.
The BoE said it was maintaining the benchmark interest rate at 0.50%, in a widely expected move.
The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP375 billion.
The decision came after official data last month showed that the U.K. economy exited a recession in the third quarter, although more recent weak data clouded the outlook for a sustained economic recovery.
The pound remained under pressure amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
Meanwhile, investors were looking ahead to the European Central Bank’s policy-setting meeting and President Mario Draghi's press conference later in the session, amid concerns that the economic slump in the euro zone is deepening.
The euro remained broadly lower after a successful Spanish bond auction on Thursday eased pressure on Prime Minister Mariano Rajoy to request a bailout before the end of this year.
Spain sold EUR4.76 billion of three-year, five-year and 20-year bonds, which will allow the country to meet its financing requirements for 2012.
The pound hit a five-week high against the euro, with EUR/GBP down 0.21% to 0.7973.
Later Thursday, the U.S. was to publish official data on the trade balance as well as the weekly government report on initial jobless claims.