Forexpros – The pound was steady against the U.S. dollar on Thursday, as investors awaited the release of U.S. data for further indications on the strength of the country’s economic recovery, while concerns over the euro zone’s debt crisis and political uncertainty in Greece remained.
GBP/USD hit 1.5547 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5511, inching up 0.04%.
Cable was likely to find support at 1.5452, the low of June 12 and resistance at 1.5581, the high of June 11.
Investors were cautious after the yield on Spanish 10-year bonds broke through the critical 7% threshold, a level seen as unsustainable in the long run, one day after a three-notch downgrade of the country’s sovereign rating by Moody’s.
Meanwhile, Italy’s Treasury successfully sold the maximum targeted amount of EUR4.5 billion of government bonds on Thursday, but the country’s three-year borrowing costs jumped to the highest level since December, amid concerns over sovereign debt contagion.
Sentiment also remained vulnerable ahead of Sunday’s closely watched general election in Greece, amid fears that a win for anti-bailout parties could precipitate a Greek exit from the euro zone.
Elsewhere, sterling was steady against the euro with EUR/GBP edging 0.06% higher, to hit 0.8093.
Later in the day, the U.S. was to produce official data on consumer price inflation, in addition to a government report on initial unemployment claims.