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Forex - GBP/USD hits 2-week high on PMI data, erasing losses

Published 06/01/2010, 09:45 AM
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EUR/GBP
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Investing.com – Sterling climbed to a 2-week high against the U.S. dollar on Tuesday, erasing earlier losses after industry data showed that Britain's manufacturing sector grew at the same sharp pace in May as in April.

GBP/USD 1.4617 during European afternoon trade, its highest since May 14; the pair subsequently consolidated around 1.4608, advancing 0.48%.

The pair was likely to find support at 1.4229, the low of May 20 and a 14-month low, and resistance at 1.4917, the high of May 13.

Earlier Tuesday, Markit and the Chartered Institute of Purchasing and Supply said their purchasing managers' index for U.K. manufacturing was unchanged in May from April at 58, the fastest pace of growth in 15 years, as a weak pound helped keep new orders brisk.

Sterling also surged versus the euro, with EUR/GBP sinking 1.45% to reach 0.8338.

Also Tuesday, BP shares slumped 12% as British investors reacted for the first time to the failure of the U.K. oil giant's "top kill" operation to halt a catastrophic oil leak in the Gulf of Mexico.

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