Forexpros – The pound held modest gains against the U.S. dollar on Thursday, as market participants looked ahead to a flurry of U.S. data later in the session, but market sentiment remained fragile as worries over Spain weighed.
GBP/USD hit 1.5526 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5506, gaining 0.19%.
Cable was likely to find near-term support at 1.5461, the session low and a four-month low and resistance at 1.5577, the high of January 20.
Investor sentiment was bolstered by expectations that Ireland would pass a vote for the European Union’s fiscal treaty in a referendum on Thursday.
But ongoing worries over the situation in Spain, where mounting borrowing costs and the lack of a convincing plan to recapitalize stricken lender Bankia fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spain’s 10-year bond was hovering close to euro-era highs at 6.7%, near the critical 7% threshold that led Greece, Ireland and Portugal to seek outside assistance.
Meanwhile, uncertainty over the outcome of a second Greek general election weighed after opinion polls showed that pro and anti-austerity parties were neck-and-neck ahead of the June 17 vote.
The pound was marginally lower against the euro, with EUR/GBP adding 0.14% to hit 0.8000.
Later in the day, the U.S. was to release preliminary data on first quarter economic growth, as well as reports on private sector employment and initial jobless claims and data on business activity in the Chicago area.
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