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Forex - GBP/USD hits daily low as Japan move supports dollar

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Forexpros - The pound slid to a daily low against the broadly stronger U.S. dollar on Thursday, after Japan intervened to curb the yen's recent sharp gains, sending the dollar higher against all the major currencies.

GBP/USD hit 1.6344 during early European trade, the daily low; the pair subsequently consolidated at 1.6342, shedding 0.50%.

Cable was likely to find support at 1.6249, Wednesday's low and resistance at 1.6474, the high of August 1 and a two-month high.

Japanese Finance Minister Yoshihiko Noda confirmed earlier that the country intervened to curb the yen's gains for the first time since March, when Japan and counterparts from the Group of Seven nations intervened in the wake of the earthquake and tsunami.

In addition, the Bank of Japan announced additional monetary easing in order to support the Finance Ministry's intervention to weaken the yen.

Meanwhile, concerns over a slowdown in global growth persisted after a report on Wednesday showed activity in the U.S. services sector declined unexpectedly in July, falling to the lowest level since February 2010.

A separate report showed that U.S. factory orders declined more-than-expected in June.

The pound was also lower against the euro, with EUR/GBP dipping 0.03% to hit 0.8721.

Later in the day, the Bank of England was to announce its benchmark interest rate, while the U.S. was to publish government data on initial jobless claims.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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