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Forex - GBP/USD hits fresh 5-month high ahead of U.S. PMI data

Published 08/02/2010, 03:16 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound surged to a fresh 5-month high against the U.S. dollar on Monday, ahead of the release of key U.S. economic data which is widely expected to show a slowdown in manufacturing growth.

GBP/USD hit 1.5763 during early European trade, the pair's highest since February 17; the pair subsequently consolidated at 1.5760, gaining 0.39%.

The pair was likely to find support at 1.5551, last Friday's low and resistance at 1.5917, the high of February 4.

On Friday, official data showed that the U.S. economy grew less than expected in the second quarter. In a report, the U.S. Commerce Department said gross domestic product grew 2.4% in the second quarter, after increasing by a revised 3.7% in the first quarter.

Analysts had expected the economy to grow by 2.5% in the second quarter.

The pound was also up against the euro, with EUR/GBP shedding 0.33% to hit 0.8288.

Later in the day, the U.S. was to release key manufacturing data, while the Federal Reserve Chairman Ben Bernanke was also to make a speech on the difficulties currently facing the U.S. economy.

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