Investing.com - The pound climbed against the U.S. dollar on Thursday and approached a one-month peak after the release of upbeat U.K. manufacturing activity data added to optimism over the strength of the economy post-Brexit.
GBP/USD hit 1.3251 during European morning trade, the pair’s highest since August 26; the pair subsequently consolidated at 1.3242, advancing 0.78%.
Cable was likely to find support at 1.3063, Wednesday’s low and resistance at 1.3349, the high if August 4.
The pound strengthened after data showed that U.K. manufacturing activity moved back into expansionary territory in August from what had been its worst level since early 2013.
Research group Markit said its U.K. manufacturing purchasing managers’ index rose to a 10-month high of 53.3 this month from a reading of 48.2 in July. Analysts had expected the index to rise to 49.0 in August.
Market sentiment was also boosted after data earlier showed that Chinese manufacturing activity also swung into expansion territory this month, with the official manufacturing PMI at 50.4, up from 49.9 in July.
But the greenback was still supported after upbeat U.S. jobs data on Wednesday added to expectations for an upcoming rate hike by the Federal Reserve.
Payroll processing firm ADP said nonfarm private employment rose by 177,000 last month, surpassing expectations for an increase of 175,000.
The data came a day after Fed Vice Chairman Stanley Fischer said the U.S. labor market is almost at full strength and the pace of interest rate increases will be data dependent.
Sterling was sharply higher against the euro, with EUR/GBP down 1.04% at a one-month low of 0.8405.