Investing.com - The pound slipped lower against the U.S. dollar on Thursday, as investors remained cautious ahead of the Bank of England’s policy decision, due later in the day, amid mounting expectations for a rate cut.
GBP/USD hit 1.3279 during European morning trade, the session low; the pair subsequently consolidated at 1.3301, shedding 0.18%.
Cable was likely to find support at 1.3169, the low of August 2 and resistance at 1.3480, the high of July 15.
The BoE was expected to lower interest rates by 25 basis points later Thursday, as a string of downbeat economic reports from the U.K. recently sparked concerns over the outlook for growth.
Meanwhile, the dollar remained mildly supported after payroll processor ADP said on Wednesday that the U.S. private sector added 179,000 jobs last month, surpassing expectations for an increase of 170,000.
The economy created 176,000 jobs in June, whose figure was revised from a previously reported increase of 172,000, the report said.
While not viewed as a reliable guide for the government jobs report due on Friday, August 5, it does give guidance on private-sector hiring.
The dollar has come under pressure amid diminished expectations for another rate hike by the Federal Reserve this year after last week’s surprisingly weak data on U.S. second quarter growth.
Sterling was also lower against the euro, with EUR/GBP edging up 0.11% to 0.8378.