Investing.com - The pound fell to a two-and-a-half month low against the U.S. dollar on Thursday, as safe haven demand for the greenback remained supported by worries over the fiscal and economic outlook for the euro zone.
GBP/USD hit 1.5639 during European morning trade, the pair’s lowest since March 15; the pair subsequently consolidated at 1.5650, shedding 0.26%.
Cable was likely to find support at 1.5602, the low of March 12 and resistance at 1.5700, the session high.
Market sentiment was hit after data showed that manufacturing activity in the euro zone contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
A separate report showed that Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
The pound was higher against the euro, with EUR/GBP shedding 0.15% to hit 0.8005.
Later Thursday, the U.K. was to release revised data on first quarter economic growth, while the U.S. was to release official data on core durable goods orders and initial jobless claims.
GBP/USD hit 1.5639 during European morning trade, the pair’s lowest since March 15; the pair subsequently consolidated at 1.5650, shedding 0.26%.
Cable was likely to find support at 1.5602, the low of March 12 and resistance at 1.5700, the session high.
Market sentiment was hit after data showed that manufacturing activity in the euro zone contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
A separate report showed that Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
The pound was higher against the euro, with EUR/GBP shedding 0.15% to hit 0.8005.
Later Thursday, the U.K. was to release revised data on first quarter economic growth, while the U.S. was to release official data on core durable goods orders and initial jobless claims.