Forexpros – The pound was almost unchanged against the U.S. dollar on Thursday, as investors eyed the Bank of England’s rate decision later in the day amid growing uncertainty over the outcome of this week’s European Union summit.
GBP/USD hit 1.5692 during European morning trade, the daily low; the pair subsequently consolidated at 1.5710, inching down 0.01%.
The pair was likely to find support at 1.5636, the low of December 1 and resistance at 1.5779, the high of November 30.
Market sentiment found support as the European Central Bank was expected to cut interest rates by 0.25% to 1% at its policy-setting meeting later Thursday.
Meanwhile, European leaders were to begin a two-day summit to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, clearing the way for the ECB to play a bigger role in stabilizing euro zone bond markets.
Elsewhere, the pound was fractionally lower against the euro with EUR/GBP advancing 0.01%, to trade at 0.8537.
Later in the day, the Bank of England was to announce its benchmark interest rate. The U.S. was also to release official data on initial jobless claims.
Forexpros
