The pound continued to trade in a negative territory in European deals on Wednesday, after a private survey showed that pace of hiring in the U.K. slowed to more than two years in June due to the shortages of qualified candidates.
The report from the Recruitment and Employment Confederation and KPMG showed that although the number of people placed in permanent jobs rose again in June, its rate of expansion eased to the slowest in 25 months.
The rate of growth in temporary and contract staff billings also moderated to an eight-month low in June, although remained marked overall.
Traders focus on the Bank of England’s interest rate decision due tomorrow, amid ongoing uncertainty about Greece. The bank is expected to keep rates unchanged at record low of 0.5 percent and asset purchase target at GBP 375 billion.
The U.K. Chancellor of the Exchequer George Osborne will present summer budget at 7:30 am ET. Along with economic and borrowing projections, Osborne may hint at slower pace of cuts in welfare bill, while slashing tax credits.
Meanwhile, European stocks are trading higher, as European leaders gave Greece until Sunday to come up with credible new proposals in return for financial aid that will save it from plunging into economic turmoil.
Greek Prime Minister Alexis Tsipras will address the European Parliament on Wednesday to brief lawmakers over the ongoing talks with the country’s international creditors.
The pound was trading in a negative territory in the Asian session.
In European trading, the pound hit more than a 2-week low of 0.7190 against the euro and a 4-week low of 1.5366 against the dollar, compared to yesterday’s closing values of 0.7119 and 1.5460, respectively. If the pound extends slide, it may locate support around 0.725 against the euro and 1.53 against the greenback.
The pound that ended Tuesday’s trading at 1.4626 against the franc and 189.36 against the yen slipped to a 3-week low of 1.4465 and near a 2-month low of 186.47, respectively. The pound is likely to challenge support around 1.45 against the franc and 186.00 against the yen.
Looking ahead, U.S. consumer credit for May is set to be published in the New York session.
At 2:00 pm ET, Federal Open Market Committee will release the minutes of June policy meeting. At the same time, Federal Reserve Bank of San Francisco President John Williams is expected to speak about the economic outlook at the International Conference of Commercial Bank Economists, in Los Angeles.
The material has been provided by InstaForex Company – www.instaforex.com