In the early European session on Wednesday, the pound lost ground against other major currencies as European equities fell and on Fitch warning of country's possible AAA credit rating downgrade.
European stocks declined after the World Bank slashed the growth outlook for the global economy amid slow recovery in developed economies and weak growth in high-income nations.
The global economy is now expected to grow 2.4 percent in 2013 compared to the June forecast for a 3 percent expansion. The bank estimates 2012 global gross domestic product growth at 2.3 percent, weaker than previously estimated 2.5 percent.
The U.K. risks losing its AAA credit rating unless it improve the economic situation in the spring budget, the head of global sovereign ratings at Fitch warned.
The credit ratings agency said that Chancellor George Osborne's autumn statement's projection of missing 2015-16 debt reduction target had weakened the Treasury's "credibility."
The pound lost 0.38 percent to hit a 6-day low of 1.6006 against the greenback from yesterday's close of 1.6067. The next support level for the pound-greenback pair is seen at 1.595. Against the yen, the pound hit 140.54, its lowest level since January 9. The pound thus declined 1.49 percent from Tuesday's close of 142.67. If the pound extends fall, it may break 140.00 level.
Core machine orders in Japan jumped a seasonally adjusted 3.9 percent on month in November, the Cabinet Office said today.
That shattered forecasts for an increase of 0.3 percent following the 2.6 percent gain in October.
The pound that finished yesterday's trading at 0.8284 against the euro slipped to as low as 0.8296. On the downside, the pound may breach 0.835 level.
The British currency that retreated from an early Asian session's multi-week high of 1.4987 against the franc fell to 1.4881. The pound may find next downside target level at 1.48.
Switzerland's retail sales growth increased less than expected in November, the Federal Statistical Office said today.
Real retail sales climbed 2.9 percent year-on-year in November, faster than the 2.7 percent drop in October, but slower than the 3.4 percent rise forecast by economists.
Looking ahead, Eurozone CPI for December is due shortly.
From the U.S., CPI and industrial production for December, NAHB housing market index for January are expected in the American morning session.
At 2:00 pm ET, U.S. Fed will release its Beige book.
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Forex News
August 21, 2026 14:42 ET The minutes of the latest policy meeting of the Federal Reserve, housing market data and manufacturing sector survey results were the main news for the U.S. economy this week. In Europe, inflation data from the U.K. was the highlight, while consumer price data from Japan drew attention in Asia.