Investing.com - The pound dropped against the dollar on Friday after soft Chinese service-sector data sent investors chasing safe-haven greenback positions that came at the pound's expense.
GBP/USD hit 1.6422 during U.S. trading, down 0.19%, up from a session low of 1.6396 and off a high of 1.6474.
Cable was likely to find support at 1.6396, the earlier low, and resistance at 1.6474, the earlier high.
The greenback enjoyed safe-harbor demand after data showed that China's non-manufacturing purchasing managers' index fell to 54.6 in December from 56.0 the previous month.
Also this week, data revealed that China’s final HSBC PMI inched down to 50.5 in December from 50.8 in November, which bolstered the greenback's safe-haven appeal.
That report came a day after government data showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
Investors also flocked to the dollar ahead of an appearance by Federal Reserve Chairman Ben Bernanke later in the day.
On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease on Friday.
Elsewhere on Thursday, the Institute for Supply Management reported that its U.S. purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.
Meanwhile in the U.K., the Markit Economics research group earlier said the construction PMI fell to 62.1 in December from 62.6 in November. Analysts had expected the index to drop to 62.0 last month.
Elsewhere, industry data revealed that U.K. house price inflation rose 1.4% in December, beating expectations for a 0.7% uptick after an upwardly revised 0.7% increase in November.
Sterling was up against the euro, with EUR/GBP down 0.34% to 0.8282, and down against the yen, with GBP/JPY down 0.50% at 171.57.
GBP/USD hit 1.6422 during U.S. trading, down 0.19%, up from a session low of 1.6396 and off a high of 1.6474.
Cable was likely to find support at 1.6396, the earlier low, and resistance at 1.6474, the earlier high.
The greenback enjoyed safe-harbor demand after data showed that China's non-manufacturing purchasing managers' index fell to 54.6 in December from 56.0 the previous month.
Also this week, data revealed that China’s final HSBC PMI inched down to 50.5 in December from 50.8 in November, which bolstered the greenback's safe-haven appeal.
That report came a day after government data showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
Investors also flocked to the dollar ahead of an appearance by Federal Reserve Chairman Ben Bernanke later in the day.
On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease on Friday.
Elsewhere on Thursday, the Institute for Supply Management reported that its U.S. purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.
Meanwhile in the U.K., the Markit Economics research group earlier said the construction PMI fell to 62.1 in December from 62.6 in November. Analysts had expected the index to drop to 62.0 last month.
Elsewhere, industry data revealed that U.K. house price inflation rose 1.4% in December, beating expectations for a 0.7% uptick after an upwardly revised 0.7% increase in November.
Sterling was up against the euro, with EUR/GBP down 0.34% to 0.8282, and down against the yen, with GBP/JPY down 0.50% at 171.57.