Investing.com - The pound was steady against the dollar in quiet trade on Tuesday as dovish comments from European Central Bank President Mario Draghi weighed on market sentiment.
GBP/USD hit 1.5520 during European morning trade, the session low; the pair subsequently consolidated at 1.5532, dipping 0.05%.
Cable was likely to find support at 1.5479, the low of May 3 and resistance at 1.5597, Monday’s high.
Speculation over a fresh rate cut by the ECB mounted after Draghi said Monday that the bank would monitor all euro zone economic data in the coming weeks and was ready to act if needed.
The ECB head said last week’s rate cut was due to the economic slowdown in the euro zone affecting core economies.
Draghi also reiterated that the ECB could cut its deposit rate to below zero. The deposit rate is the rate paid by the ECB on overnight deposits by euro zone banks.
Elsewhere, sterling edged lower against the euro, with EUR/GBP easing up 0.09% to 1.0077.
Germany was to release official data on factory orders later in the day.
