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Forex - GBP/USD pares gains after U.K. services sector data

Published 06/03/2010, 07:33 AM
GBP/USD
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GBP/JPY
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Investing.com – Sterling pared gains versus the U.S. dollar on Thursday after industry data showed that activity in Britain's services sector grew slower than forecast in May.

GBP/USD hit 1.4688 during early European trade, gaining 0.24%, after retreating from the daily high of 1.4743.

Cable was likely to find resistance at 1.5054, the high of May 10, and support at 1.4229, the low of May 20 and a 14-month low.

Earlier in the day, the market research firm Markit and the Chartered Institute of Purchasing and Supply, an industry group, said their services purchasing managers' index rose to 55.4 in May, from 55.3 in April. Analysts had forecast a stronger increase to 55.6.

The pound's earlier rally versus the dollar came after industry data showed that U.K. house prices continued to rise in May.

Sterling also rose versus the yen on Thursday, with GBP/JPY jumping 0.84% to reach 136.12.

Meanwhile, report from JP Morgan Cazenove showed that an early sale of the British government's holdings in Lloyds Banking Group and Royal Bank of Scotland could help the United Kingdom retain its triple-A credit rating, The Telegraph reported.

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