Investing.com - The pound remained close to seven-week lows against the U.S. dollar on Wednesday, as global growth concerns coupled with ongoing uncertainty over the U.K.'s role in the European Union continued to weigh on demand for sterling.
GBP/USD hit 1.5976 during U.S. morning trade, the pair's lowest since November 28; the pair subsequently consolidated at 1.5991, dropping 0.46%.
Cable was likely to find support at 1.5926, the low of November 23 and resistance at 1.6079, the session high.
Sentiment weakened 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.
In the U.S., the Labor Department said that consumer prices were flat in December, broadly in line with market expectations, following a 0.3% decline in November.
A separate report showed that U.S. industrial production rose 0.3% last month, in line with expectations.
Elsewhere, the pound was lower against the euro with EUR/GBP rising 0.37%, to hit 0.8312.
Also Wednesday, European Central Bank governing council member Ewald Nowotny said Wednesday that the situation in the euro zone had stabilized 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.
GBP/USD hit 1.5976 during U.S. morning trade, the pair's lowest since November 28; the pair subsequently consolidated at 1.5991, dropping 0.46%.
Cable was likely to find support at 1.5926, the low of November 23 and resistance at 1.6079, the session high.
Sentiment weakened 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.
In the U.S., the Labor Department said that consumer prices were flat in December, broadly in line with market expectations, following a 0.3% decline in November.
A separate report showed that U.S. industrial production rose 0.3% last month, in line with expectations.
Elsewhere, the pound was lower against the euro with EUR/GBP rising 0.37%, to hit 0.8312.
Also Wednesday, European Central Bank governing council member Ewald Nowotny said Wednesday that the situation in the euro zone had stabilized 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.