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Forex - GBP/USD holds steady, eyes on ECB

Published 09/03/2012, 10:28 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound held steady against the U.S. dollar on Monday, as fresh global growth concerns weighed on risk appetite, while investors awaited a European Central Bank meeting later in the week with hopes for a fresh intervention.

GBP/USD hit 1.5883 during U.S. morning trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5873, easing up 0.04%.

Cable was likely to find support at 1.5801, the low of August 29 and resistance at 1.5970, the high of April 17.

Investors remained cautious ahead of the ECB’s policy setting meeting on Thursday, amid speculation that the bank is working on measures to help stabilize the euro zone's sovereign debt markets.

Concerns over the outlook for growth re-emerged earlier in the day after revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.

Markit said the bloc’s manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44, but remained well below the 50 mark that separates growth from contraction.

Separately, a report showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand.

The pound found some support however, after data showed that the rate of contraction in the U.K. manufacturing sector eased significantly in August.

Markit said that its U.K. manufacturing PMI rose to 49.5 in August from a reading of 45.4 in July, beating expectations for an increase to 46.2.

Meanwhile, the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.

Elsewhere, the pound was fractionally higher against the euro with EUR/GBP inching down 0.08%, to hit 0.7923.

Trade looked likely to remain subdued on Monday, with markets in the U.S. closed for the Labor Day holiday.


Forex - GBP/USD holds steady, eyes on ECB
Investing.com - The pound held steady against the U.S. dollar on Monday, as fresh global growth concerns weighed on risk appetite, while investors awaited a European Central Bank meeting later in the week with hopes for a fresh intervention.
GBP/USD hit 1.5883 during U.S. morning trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5873, easing up 0.04%.
Cable was likely to find support at 1.5801, the low of August 29 and resistance at 1.5970, the high of April 17.
Investors remained cautious ahead of the ECB’s policy setting meeting on Thursday, amid speculation that the bank is working on measures to help stabilize the euro zone's sovereign debt markets.
Concerns over the outlook for growth re-emerged earlier in the day after revised data showed that the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
Markit said the bloc’s manufacturing purchasing managers’ index rose to 45.1 from July's 37-month low of 44, but remained well below the 50 mark that separates growth from contraction.
Separately, a report showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a 41-month low of 47.6 in August from a preliminary reading of 47.8, as new orders slumped in the face of weakening global demand.
The pound found some support however, after data showed that the rate of contraction in the U.K. manufacturing sector eased significantly in August.
Markit said that its U.K. manufacturing PMI rose to 49.5 in August from a reading of 45.4 in July, beating expectations for an increase to 46.2.
Meanwhile, the greenback remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
Elsewhere, the pound was fractionally higher against the euro with EUR/GBP inching down 0.08%, to hit 0.7923.
Trade looked likely to remain subdued on Monday, with markets in the U.S. closed for the Labor Day holiday.

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