Investing.com - The pound eased off a three-month high against the U.S. dollar on Thursday, but losses were limited amid speculation that the Federal Reserve is moving closer to implementing more economic stimulus measures.
GBP/USD pulled back from 1.5911, the pair’s highest since May 17, to hit 1.5872 during European afternoon trade, dipping 0.05%.
Cable was likely to find support at 1.5764, Wednesday’s low and resistance at 1.5931, the high of May 17.
The dollar remained under pressure after Wednesday’s minutes of the Fed’s August meeting showed that many policymakers think additional easing may be warranted "fairly soon" unless there is evidence of a "substantial and sustainable" strengthening in the economic recovery.
But investors remained cautious after weak manufacturing data out of the euro zone and China underlined concerns over the outlook for global growth.
Manufacturing activity in the euro zone rose more-than-expected in August, but remained in contraction territory for the 12th consecutive month, while service sector activity slumped to a two-month low.
The data came after a report showing that manufacturing activity in China slumped to a nine-month low in August, adding to concerns over a slowdown in the world’s second largest economy.
Sterling was lower against the euro, with EUR/GBP up 0.29% to 0.7913.
Later Thursday, the U.S. was to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sales.
GBP/USD pulled back from 1.5911, the pair’s highest since May 17, to hit 1.5872 during European afternoon trade, dipping 0.05%.
Cable was likely to find support at 1.5764, Wednesday’s low and resistance at 1.5931, the high of May 17.
The dollar remained under pressure after Wednesday’s minutes of the Fed’s August meeting showed that many policymakers think additional easing may be warranted "fairly soon" unless there is evidence of a "substantial and sustainable" strengthening in the economic recovery.
But investors remained cautious after weak manufacturing data out of the euro zone and China underlined concerns over the outlook for global growth.
Manufacturing activity in the euro zone rose more-than-expected in August, but remained in contraction territory for the 12th consecutive month, while service sector activity slumped to a two-month low.
The data came after a report showing that manufacturing activity in China slumped to a nine-month low in August, adding to concerns over a slowdown in the world’s second largest economy.
Sterling was lower against the euro, with EUR/GBP up 0.29% to 0.7913.
Later Thursday, the U.S. was to release its weekly government report on initial jobless claims, followed by preliminary data on manufacturing activity and official data on new home sales.