Investing.com – The pound remained down against the U.S. dollar on Monday, trading close to a one-week low, weighed by a combination of concerns over the debt crisis in the euro zone and speculation over fresh easing measures by the Bank of England.
GBP/USD hit 1.5484 during European afternoon trade, the pair’s lowest since September 26; the pair subsequently consolidated at 1.5499, shedding 0.53%.
Cable was likely to find support at 1.5431, the low of September 26 and resistance at 1.5664, last Friday’s high.
The pound remained lower following a report showing that manufacturing activity in the U.K. rebounded from a 26-month low in September.
The Markit/CIPS manufacturing purchasing managers’ index rose to 51.1 last month from an upwardly revised 49.4 in August. The reading was well above forecasts of 48.6 and above the 50 level that separates growth from contraction.
However, the report said growth remained below the levels seen at the beginning of the year and that the contribution of the manufacturing sector to the overall economic recovery looked likely to remain “modest, at best” for the remainder of the year.
The pound has been hit by speculation that the BoE may restart its asset purchase program, possibly as soon as this week, after a recent string of soft economic data sparked fears the economic recovery in the U.K. is losing momentum.
Meanwhile, concerns over a debt default by Greece mounted, after the Greek government said Sunday it will miss its deficit reduction targets this year.
The pound was also lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8594.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.
GBP/USD hit 1.5484 during European afternoon trade, the pair’s lowest since September 26; the pair subsequently consolidated at 1.5499, shedding 0.53%.
Cable was likely to find support at 1.5431, the low of September 26 and resistance at 1.5664, last Friday’s high.
The pound remained lower following a report showing that manufacturing activity in the U.K. rebounded from a 26-month low in September.
The Markit/CIPS manufacturing purchasing managers’ index rose to 51.1 last month from an upwardly revised 49.4 in August. The reading was well above forecasts of 48.6 and above the 50 level that separates growth from contraction.
However, the report said growth remained below the levels seen at the beginning of the year and that the contribution of the manufacturing sector to the overall economic recovery looked likely to remain “modest, at best” for the remainder of the year.
The pound has been hit by speculation that the BoE may restart its asset purchase program, possibly as soon as this week, after a recent string of soft economic data sparked fears the economic recovery in the U.K. is losing momentum.
Meanwhile, concerns over a debt default by Greece mounted, after the Greek government said Sunday it will miss its deficit reduction targets this year.
The pound was also lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8594.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.