Forexpros – The pound dipped against the U.S. dollar on Wednesday, as investors remained wary in the absence of a breakthrough on a second bailout deal for Greece.
GBP/USD retreated from 1.5929, the pair’s highest since November 15, to hit 1.5894 during European afternoon trade, edging down 0.01%.
Cable was likely to find support at 1.5843, the low of September 9 and resistance at 1.5972, the high of October 21.
Greek Prime Minister Lucas Papademos was to hold talks with the leaders of Greece’s three political parties later in the day to discuss the terms of new austerity measures being demanded in return for a second bailout worth EUR130 billion.
The deeply unpopular measures include billions of euros in government spending reductions, as well as cuts to pensions and wages.
Greece needs to finalize a debt restructuring deal by early March as part of an agreement to receive a second bailout package.
Meanwhile, the greenback came under pressure after Federal Reserve Chairman Ben Bernanke indicated that the central bank would keep borrowing costs close to zero for another two years even after data last week showing the U.S. unemployment unexpectedly fell to a three-year low.
In testimony to the Senate Budget Committee in Washington on Tuesday Bernanke said the decline in the jobless rate understated weakness in the labor market.
The pound was lower against the euro with EUR/GBP adding 0.12%, to hit 0.8352.
In the U.K., investors were looking ahead to the Bank of England’s policy decision on Thursday, amid expectations that policymakers will implement a further GBP50 billion of quantitative easing in order to shore up growth in the faltering U.K. economy.
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