Investing.com - The pound remained supported against the U.S. dollar on Monday, as stronger-than-forecast U.K. manufacturing data saw investors pare back short-term expectations for another round of stimulus from the Bank of England.
GBP/USD hit 1.5898 during European afternoon trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5877, easing up 0.08%.
Cable was likely to find support at 1.5777, Friday’s low and near-term resistance at 1.5911, the high of August 23 and a three-and-a-half month high.
Markit said that its U.K. manufacturing purchasing managers’ index rose to 49.5 in August from a reading of 45.4 in July, beating expectations for an increase to 46.2, and moving much closer to the 50 level that separates growth from contraction.
Output rose solidly at consumer goods producers, while intermediate goods companies saw a marginal return to growth.
The rate of decline in new export orders also eased sharply, despite weak demand from Europe.
Market sentiment remained cautious ahead of the European Central Bank's policy setting meeting on Thursday, amid speculation that the bank is working on policy measures to help stabilize the euro zone's sovereign debt markets.
Investors were also looking ahead to U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.
The dollar 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.
The pound was higher against the euro, with EUR/GBP sliding 0.14% to 0.7918.
Trade looked likely to remain subdued on Monday, with markets in the U.S. closed for the Labor Day holiday.
GBP/USD hit 1.5898 during European afternoon trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5877, easing up 0.08%.
Cable was likely to find support at 1.5777, Friday’s low and near-term resistance at 1.5911, the high of August 23 and a three-and-a-half month high.
Markit said that its U.K. manufacturing purchasing managers’ index rose to 49.5 in August from a reading of 45.4 in July, beating expectations for an increase to 46.2, and moving much closer to the 50 level that separates growth from contraction.
Output rose solidly at consumer goods producers, while intermediate goods companies saw a marginal return to growth.
The rate of decline in new export orders also eased sharply, despite weak demand from Europe.
Market sentiment remained cautious ahead of the European Central Bank's policy setting meeting on Thursday, amid speculation that the bank is working on policy measures to help stabilize the euro zone's sovereign debt markets.
Investors were also looking ahead to U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.
The dollar 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.
The pound was higher against the euro, with EUR/GBP sliding 0.14% to 0.7918.
Trade looked likely to remain subdued on Monday, with markets in the U.S. closed for the Labor Day holiday.