Investing.com - The euro was trading in a narrow range against the pound on Tuesday, as investors remained cautious ahead of Bank of England and European Central Bank monetary policy meetings later in the week.
EUR/GBP hit 0.8033 during European morning trade, the session high; the pair subsequently consolidated at 0.8026, up 0.16%.
The pair was likely to find support at 0.8005, Monday’s low and resistance at 0.8066, the high of June 22.
Earlier Tuesday, data showed that construction activity in the U.K. fell at the fastest rate in two-and-a-half years in June, as output and new orders both fell.
Markit and the Chartered Institute of Purchasing & Supply said the construction purchasing managers' index fell to 48.2 in June, from a reading of 54.4 in May, its lowest reading since December 2009 below the 50 level which separates growth from contraction.
Analysts had forecast a more modest decline to 53.0.
The weak data added to speculation that the BoE will implement a fresh round of stimulus measures at Thursday’s meeting, after data on Monday showed that the U.K. manufacturing sector contracted for a second successive month in June.
Investors were also eyeing the outcome of the ECB’s policy meeting on Thursday, amid growing expectations for a rate cut to help bolster growth in the region.
The pound edged lower against the U.S. dollar, with GBP/USD dipping 0.06% to 1.5681.
Also Tuesday, official data showed that net lending to individuals in the U.K. fell less-than-expected in May.
The BoE said total net lending declined to GBP1.3 billion in May from GBP1.4 billion the previous month, missing expectations for a decline to GBP1.1 billion.
EUR/GBP hit 0.8033 during European morning trade, the session high; the pair subsequently consolidated at 0.8026, up 0.16%.
The pair was likely to find support at 0.8005, Monday’s low and resistance at 0.8066, the high of June 22.
Earlier Tuesday, data showed that construction activity in the U.K. fell at the fastest rate in two-and-a-half years in June, as output and new orders both fell.
Markit and the Chartered Institute of Purchasing & Supply said the construction purchasing managers' index fell to 48.2 in June, from a reading of 54.4 in May, its lowest reading since December 2009 below the 50 level which separates growth from contraction.
Analysts had forecast a more modest decline to 53.0.
The weak data added to speculation that the BoE will implement a fresh round of stimulus measures at Thursday’s meeting, after data on Monday showed that the U.K. manufacturing sector contracted for a second successive month in June.
Investors were also eyeing the outcome of the ECB’s policy meeting on Thursday, amid growing expectations for a rate cut to help bolster growth in the region.
The pound edged lower against the U.S. dollar, with GBP/USD dipping 0.06% to 1.5681.
Also Tuesday, official data showed that net lending to individuals in the U.K. fell less-than-expected in May.
The BoE said total net lending declined to GBP1.3 billion in May from GBP1.4 billion the previous month, missing expectations for a decline to GBP1.1 billion.