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Forex - EUR/GBP sinks to 5-week low after British PMI data

Published 04/01/2010, 05:29 AM
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Investing.com – Sterling climbed to a 5-week high against the euro on Thursday, after a survey of purchasing managers showed that British manufacturing activity grew in March at its fastest rate since October 1994.

EUR/GBP sank to 0.8851 during European morning trade, the pair's lowest since Feb. 25. The pair subsequently consolidated around 0.8873, shedding 0.28%.

EUR/GBP was likely to find support at 0.8749, the low of Feb. 23, and resistance at 0.9149, the high of March 1 and a 3-month high.

Earlier in the day, the Chartered Institute of Purchasing & Supply said its seasonally adjusted CIPS/Markit Purchasing Managers’ Index rose to 57.2 in March, up from 56.5 in February. Economists had forecast the figure to come in at 57.

Sterling also rose versus the U.S. dollar and the yen: GBP/USD gained 0.23% to hit 1.5218 and GBP/JPY rose 0.05% to reach 141.99.

Also Thursday, a senior executive at PIMCO, the world's largest bond fund, said that Europe's action on Greece appeared ineffective in fixing the country's problems, and that Britain's sovereign debt rating could be downgraded within a year.

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