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Forex - GBP/USD edges lower after U.K. PMI report

Published 06/02/2014, 04:43 AM
Pound slips lower against dollar on tepid U.K. data
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Investing.com - The pound edged lower against the U.S. dollar on Monday, after the release of tepid economic reports from the U.K., although Friday's disappointing U.S. data continued dampen demand for the greenback.

GBP/USD hit 1.6726 during European morning trade, the session low; the pair subsequently consolidated at 1.6729, slipping 0.14%.

Cable was likely to find support at 1.6693, the low of May 29 and resistance at 1.6816, the high of May 28.

Markit research group said the U.K. manufacturing purchasing managers's index ticked down to 57.0 in June, from a reading of 57.3 the previous month, in line with expectations.

A separate report showed that net lending to individuals in the U.K. rose by £2.4 billion in April, below expectations for a £2.7 billion increase, after a downwardly revised £2.8 billion gain in March.

Meanwhile, the dollar remained under pressure after data on Friday showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

Sterling was higher against the euro, with EUR/GBP edging down 0.12% to 0.8127.

In the euro zone, Markit said that Spain's manufacturing PMI rose to 52.9 this month, from 52.7 in May, in line with market expectations.

Italy's manufacturing PMI slipped to 53.2 in June, from a reading of 54.0, compared to expectations for a fall to 53.7.

Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.

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