Investing.com - The euro trimmed losses against the pound on Tuesday, pulling back from a one-month low as mixed U.K. GDP and manufacturing activity data weighed on sterling.
EUR/GBP pulled back from 0.8565, the pair's lowest since October 4 to hit 0.8591 during European morning trade, still down 0.26%.
The pair was likely to find support at 0.8532, the low of October 4 and resistance at 0.8647, the high of October 5.
Official data showed that the U.K. economy grew slightly more-than-expected in the third quarter as the service sector expanded. In a report, the Office for National Statistics said gross domestic product increased by 0.5% in the third quarter, accelerating from growth of 0.1% in the preceding quarter.
Analysts had expected the U.K. GDP to rise 0.4% in the third quarter.
But the data was overshadowed by a report showing that manufacturing activity in the U.K. fell to a 28-month low in October.
Market research group Markit said that its U.K. manufacturing purchasing managers' index fell to a seasonally adjusted 47.4 in October, down from a reading of 50.8 in September, whose figure was revised down from 51.1.
Analysts had expected the index to decline to 50.0 in October.
But the single currency remained under pressure amid uncertainty over how the package of anti-crisis measures agreed on at last Thursday’s European Union summit could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package as well as surging Italian borrowing costs also weighed on the euro.
Elsewhere, the pound was also down against the U.S. dollar with GBP/USD dropping 0.90%, to trade at 1.5941.
Later in the day, the Institute of Supply Management is to produce a report on U.S. manufacturing activity.
EUR/GBP pulled back from 0.8565, the pair's lowest since October 4 to hit 0.8591 during European morning trade, still down 0.26%.
The pair was likely to find support at 0.8532, the low of October 4 and resistance at 0.8647, the high of October 5.
Official data showed that the U.K. economy grew slightly more-than-expected in the third quarter as the service sector expanded. In a report, the Office for National Statistics said gross domestic product increased by 0.5% in the third quarter, accelerating from growth of 0.1% in the preceding quarter.
Analysts had expected the U.K. GDP to rise 0.4% in the third quarter.
But the data was overshadowed by a report showing that manufacturing activity in the U.K. fell to a 28-month low in October.
Market research group Markit said that its U.K. manufacturing purchasing managers' index fell to a seasonally adjusted 47.4 in October, down from a reading of 50.8 in September, whose figure was revised down from 51.1.
Analysts had expected the index to decline to 50.0 in October.
But the single currency remained under pressure amid uncertainty over how the package of anti-crisis measures agreed on at last Thursday’s European Union summit could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package as well as surging Italian borrowing costs also weighed on the euro.
Elsewhere, the pound was also down against the U.S. dollar with GBP/USD dropping 0.90%, to trade at 1.5941.
Later in the day, the Institute of Supply Management is to produce a report on U.S. manufacturing activity.