Investing.com - The pound extended losses against the broadly stronger U.S. dollar on Wednesday, as concerns over the economic outlook for the euro zone weighed, ahead of the release of U.S. data on private sector employment.
GBP/USD hit 1.6169 during European afternoon trade, the pair’s lowest since April 27; the pair subsequently consolidated at 1.6171, shedding 0.31%.
Cable was likely to find support at 1.6108, the low of April 24 and resistance at 1.6238, the session high.
The final euro zone manufacturing purchasing managers’ index for April slumped to 45.9 in April, down from 47.7 in March and below the preliminary estimate of 46.0 to give the lowest reading since June 2009.
The data indicated that the region’s core economies are being affected by the ongoing debt crisis, with German manufacturing output falling at the fastest rate since July 2009.
A separate report earlier showed that the German unemployment rate also rose last month.
Meanwhile, official data showed that the unemployment rate across the 17-nation euro zone rose to a record 10.9% in March.
The pound found some support after reports showed that construction sector activity in the U.K. declined less-than-expected in April, while U.K. mortgage approvals rose unexpectedly in March.
The U.K. construction PMI came in at 55.8 in April, down from 56.7 the previous month, beating expectations for a decline to 54.0, indicating that the sector is continuing to recover.
The pound was trading close to a 22-month high against the euro, with EUR/GBP shedding 0.46% to hit 0.8123.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls, as well as government data on factory orders and crude oil stockpiles.
GBP/USD hit 1.6169 during European afternoon trade, the pair’s lowest since April 27; the pair subsequently consolidated at 1.6171, shedding 0.31%.
Cable was likely to find support at 1.6108, the low of April 24 and resistance at 1.6238, the session high.
The final euro zone manufacturing purchasing managers’ index for April slumped to 45.9 in April, down from 47.7 in March and below the preliminary estimate of 46.0 to give the lowest reading since June 2009.
The data indicated that the region’s core economies are being affected by the ongoing debt crisis, with German manufacturing output falling at the fastest rate since July 2009.
A separate report earlier showed that the German unemployment rate also rose last month.
Meanwhile, official data showed that the unemployment rate across the 17-nation euro zone rose to a record 10.9% in March.
The pound found some support after reports showed that construction sector activity in the U.K. declined less-than-expected in April, while U.K. mortgage approvals rose unexpectedly in March.
The U.K. construction PMI came in at 55.8 in April, down from 56.7 the previous month, beating expectations for a decline to 54.0, indicating that the sector is continuing to recover.
The pound was trading close to a 22-month high against the euro, with EUR/GBP shedding 0.46% to hit 0.8123.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls, as well as government data on factory orders and crude oil stockpiles.