Investing.com – The pound slumped against the U.S. dollar on Wednesday, hitting a 2-week low as the British Chancellor of the Exchequer unveiled a keenly awaited pre-election budget that he said would secure the U.K. recovery.
GBP/USD sank to 1.4897 during European afternoon trade, cable's lowest rate since March 10; the pair subsequently consolidated around 1.4915, shedding 0.89%.
Cable was likely to find support at 1.4781, the low of March 1 and a 10-month low, and resistance at 1.5575, the high of Feb. 23.
During his statement to parliament, Alistair Darling, the Chancellor of the Exchequer, said the budget would secure Britain's economic recovery, tackle borrowing and invest in the country's industrial future.
"It will continue targeted support for businesses and families where and when it is needed," he told MPs. "It will set out how we stick to our plan to halve the deficit within four years."
The statement came during the run-up to a general election in Britain. The government's budget deficit of 12% of gross domestic product - similar to Greece’s - has made the handling of the nation’s finances by Darling and the prime minister, Gordon Brown, a central election issue.
Sterling, meanwhile, pared gains versus the euro, but EUR/GBP was still down 0.3%, trading at 0.8944.
Later in the day, the U.S. Census Bureau was due to release key data on new home sales, a leading indicator of production.
GBP/USD sank to 1.4897 during European afternoon trade, cable's lowest rate since March 10; the pair subsequently consolidated around 1.4915, shedding 0.89%.
Cable was likely to find support at 1.4781, the low of March 1 and a 10-month low, and resistance at 1.5575, the high of Feb. 23.
During his statement to parliament, Alistair Darling, the Chancellor of the Exchequer, said the budget would secure Britain's economic recovery, tackle borrowing and invest in the country's industrial future.
"It will continue targeted support for businesses and families where and when it is needed," he told MPs. "It will set out how we stick to our plan to halve the deficit within four years."
The statement came during the run-up to a general election in Britain. The government's budget deficit of 12% of gross domestic product - similar to Greece’s - has made the handling of the nation’s finances by Darling and the prime minister, Gordon Brown, a central election issue.
Sterling, meanwhile, pared gains versus the euro, but EUR/GBP was still down 0.3%, trading at 0.8944.
Later in the day, the U.S. Census Bureau was due to release key data on new home sales, a leading indicator of production.