Forexpros – The pound was almost unchanged against the U.S. dollar on Wednesday, as risk sentiment remained soft amid ongoing concerns over the deepening debt crisis in the euro zone.
GBP/USD pulled back from 1.5527, the days low to hit 1.5590 during European early afternoon trade, dipping 0.03%
Cable was likely to find support at 1.5468, Tuesday’s low and an almost seven-week low and resistance at 1.5628, the days high.
Investor sentiment was boosted after the Peoples Bank of China announced earlier that it plans to cut banks reserve requirement ratios by 0.5%, in an effort to help boost liquidity and support the world’s second largest economy amid global market turmoil.
In the euro zone, finance ministers were preparing to meet for a second day of talks aimed at addressing the escalating debt crisis in the region, after agreeing on measures to expand the bloc’s bailout fund on Tuesday.
Ahead of the talks, European Union Economic and Monetary Affairs Commissioner Olli Rehn said that the region now faces a crucial 10 days to save the single currency bloc.
In the U.K., a report by Gfk showed that consumer confidence edged up slightly this month, but remained close to a two-year low and the outlook remained downbeat.
The data came one day after Chancellor George Osborne said the U.K. economy was now expected to grow just 0.7% in 2012, down from a March budget forecast of 2.5% growth.
The pound was steady against the euro, with EUR/GBP dipping 0.01% to hit 0.8532.
Later in the day, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as reports on manufacturing activity in the Chicago area and pending home sales.
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