Investing.com - The pound traded higher against the dollar on Tuesday after opposition lawmakers in the U.S. voiced support for President Barack Obama's calls for military action against Syria.
Concerns of U.S. military strikes against Syrian targets offset better-than-expected U.S. manufacturing data earlier and softened the greenback against the pound and trimmed its gains against other currencies.
In U.S. trading on Tuesday, GBP/USD was trading at 1.5569, up 0.18%, up from a session low of 1.5522 and off from a high of 1.5602.
Cable was likely to find support at 1.5462, Friday's low, and resistance at 1.5612, the high from Aug. 26.
Key Republican lawmakers including House Speaker John Boehner said earlier Tuesday they'd support a presidential call for U.S. military attacks on Syria via limited air or missile strikes, which weakened the dollar against the pound.
The dollar suffered further after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S.
Geopolitical concerns offset positive data out of the U.S.
The Institute for Supply Management reported that its August purchasing managers’ index rose to 55.7 from 55.4 in July, beating analysts' calls for a 54.0 reading.
The report cemented views held by many that the Federal Reserve could start to unwind its USD85 billion monthly bond-buying program at its upcoming Sept. 17-18 policy meeting.
Monthly asset purchases weaken the dollar to spur recovery.
Meanwhile in the U.K., the construction sector expanded at its fastest pace in six years in August.
The Markit/CIPS August U.K. construction PMI rose to 59.1 from 57.0 in July. Economists were expecting a 58.3 reading.
The data fueled expectations that the Bank of England could raise interest rates sooner than it has previously indicated.
The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.31% at 0.8462 and GBP/JPY up 0.21% at 154.71.
On Wednesday, the U.S. is to release data on its trade balance, while the U.K. is to release data on service-sector activity, a leading indicator of economic health.
Concerns of U.S. military strikes against Syrian targets offset better-than-expected U.S. manufacturing data earlier and softened the greenback against the pound and trimmed its gains against other currencies.
In U.S. trading on Tuesday, GBP/USD was trading at 1.5569, up 0.18%, up from a session low of 1.5522 and off from a high of 1.5602.
Cable was likely to find support at 1.5462, Friday's low, and resistance at 1.5612, the high from Aug. 26.
Key Republican lawmakers including House Speaker John Boehner said earlier Tuesday they'd support a presidential call for U.S. military attacks on Syria via limited air or missile strikes, which weakened the dollar against the pound.
The dollar suffered further after Russia’s news agency said a rocket launch was detected in the Mediterranean. Israel later said it carried out a joint missile test with the U.S.
Geopolitical concerns offset positive data out of the U.S.
The Institute for Supply Management reported that its August purchasing managers’ index rose to 55.7 from 55.4 in July, beating analysts' calls for a 54.0 reading.
The report cemented views held by many that the Federal Reserve could start to unwind its USD85 billion monthly bond-buying program at its upcoming Sept. 17-18 policy meeting.
Monthly asset purchases weaken the dollar to spur recovery.
Meanwhile in the U.K., the construction sector expanded at its fastest pace in six years in August.
The Markit/CIPS August U.K. construction PMI rose to 59.1 from 57.0 in July. Economists were expecting a 58.3 reading.
The data fueled expectations that the Bank of England could raise interest rates sooner than it has previously indicated.
The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.31% at 0.8462 and GBP/JPY up 0.21% at 154.71.
On Wednesday, the U.S. is to release data on its trade balance, while the U.K. is to release data on service-sector activity, a leading indicator of economic health.