Investing.com - The pound was almost unchanged against the U.S. dollar on Thursday, hovering near nine-month highs after data showed that service sector activity in the U.K. fell less than expected last month, while U.S. budget concerns continued to weigh.
GBP/USD hit 1.6193 during European morning trade, the session low; the pair subsequently consolidated at 1.6223, easing 0.01%.
Cable was likely to find support at 1.6128, the low of September 30 and resistance at 1.6260, the high of October 1 and the highest since early January.
Markit research group said the U.K. services purchasing managers' index ticked down to 60.3 in September, from a reading of 60.5 the previous month, compared to expectations for a decline to 60.0.
A separate report showed that house price inflation in the U.K. rose 0.3% last month, confounding expectations for a 0.5% increase, after a downwardly revised 0.3% uptick in August.
Meanwhile, the dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday, although a solution still seemed unlikely.
Markets were also considering how the political deadlock in Washington will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Sterling was lower against the euro with EUR/GBP adding 0.16%, to hit 0.8383.
In the euro zone, Markit said Spain's services PMI swung into contraction territory last month, falling to 49.0 from 50.4 in August. Analysts had expected the index to rise to 51.0 in September.
Separately, Markits final reading for the euro zone services PMI rose to 52.2 in September, from a reading of 52.1 in August. Analysts had expected the index to remain unchanged last month.
GBP/USD hit 1.6193 during European morning trade, the session low; the pair subsequently consolidated at 1.6223, easing 0.01%.
Cable was likely to find support at 1.6128, the low of September 30 and resistance at 1.6260, the high of October 1 and the highest since early January.
Markit research group said the U.K. services purchasing managers' index ticked down to 60.3 in September, from a reading of 60.5 the previous month, compared to expectations for a decline to 60.0.
A separate report showed that house price inflation in the U.K. rose 0.3% last month, confounding expectations for a 0.5% increase, after a downwardly revised 0.3% uptick in August.
Meanwhile, the dollar remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday, although a solution still seemed unlikely.
Markets were also considering how the political deadlock in Washington will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Sterling was lower against the euro with EUR/GBP adding 0.16%, to hit 0.8383.
In the euro zone, Markit said Spain's services PMI swung into contraction territory last month, falling to 49.0 from 50.4 in August. Analysts had expected the index to rise to 51.0 in September.
Separately, Markits final reading for the euro zone services PMI rose to 52.2 in September, from a reading of 52.1 in August. Analysts had expected the index to remain unchanged last month.