Forex - GBP/USD hits fresh daily high after upbeat U.K. PMI data

Published 10/05/2010, 08:56 AM
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Investing.com – The pound extended early gains against the U.S. dollar on Tuesday, rising to hit a fresh daily high after official data showed that the U.K.’s services PMI rose unexpectedly in August.

GBP/USD hit 1.5913 during European afternoon trade, a fresh daily high; the pair subsequently consolidated at 1.5886, gaining 0.36%.

Cable was likely to find short-term support at 1.5668, last Thursday's low and short-term resistance at 1.5922, last Thursday's high.

Earlier in the day, the market research group, Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index registered 52.8 in September, up from 51.3 in August. Analysts had expected the index to fall to 51.2 in September.

Commenting on the report, Chris Williamson, chief economist at Markit said, “Business activity rose at a faster rate than August, but the survey provided plenty of signs to suggest that this does not represent the start of a renewed upturn, and instead growth is set to remain subdued in the coming months”.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.46% to hit 0.8686.

Later in the day, the U.S. was to release official data on service sector activity.


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