Investing.com - The pound was almost unchanged against the U.S. dollar on Tuesday, as investors continued to eye the outcome of the European Central Bank’s policy meeting later in the week, while disappointing U.K. economic data weighed on demand for sterling.
GBP/USD hit 1.5869 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.5886, easing 0.02%.
Cable was likely to find support at 1.5801, the low of August 29 and resistance at 1.5970, the high of April 17.
The pound came under pressure after data earlier showed that U.K. construction activity contracted unexpectedly in August, as new orders fell at the sharpest rate since April 2009.
The U.K. construction purchasing managers’ index ticked down to 49.0 in August from a reading of 50.9 the previous month. Analysts had expected the construction PMI to fall to 50.0 in August.
But sentiment remained mildly supported by hopes for fresh action by the ECB to stem the debt crisis in the euro zone, after the central bank’s President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, adding that it would not constitute state financing.
At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.
Separately, sentiment on the greenback remained vulnerable after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
Elsewhere, the pound was also steady against the euro with EUR/GBP dipping 0.07%, to hit 0.7920.
Later in the day, the Institute for Supply Management was to release a report on U.S. manufacturing activity.
GBP/USD hit 1.5869 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.5886, easing 0.02%.
Cable was likely to find support at 1.5801, the low of August 29 and resistance at 1.5970, the high of April 17.
The pound came under pressure after data earlier showed that U.K. construction activity contracted unexpectedly in August, as new orders fell at the sharpest rate since April 2009.
The U.K. construction purchasing managers’ index ticked down to 49.0 in August from a reading of 50.9 the previous month. Analysts had expected the construction PMI to fall to 50.0 in August.
But sentiment remained mildly supported by hopes for fresh action by the ECB to stem the debt crisis in the euro zone, after the central bank’s President Mario Draghi indicated on Monday that he would be comfortable buying bonds with maturities of up to about three years, adding that it would not constitute state financing.
At its policy meeting on Thursday, the ECB is expected to announce the details of a long awaited debt-buying program designed to help ease funding pressures for indebted euro zone countries.
Separately, sentiment on the greenback remained vulnerable after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
Elsewhere, the pound was also steady against the euro with EUR/GBP dipping 0.07%, to hit 0.7920.
Later in the day, the Institute for Supply Management was to release a report on U.S. manufacturing activity.