Investing.com - The pound rose to fresh 27-month highs against the dollar on Monday after data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.
GBP/USD was up 0.22% to 1.6406, after initially touching highs of 1.6442, the highest level since August 2011.
Cable was likely to find support at 1.6313, Friday’s low and resistance at 1.6450.
The U.K. manufacturing purchasing managers’ index rose to 58.4 in November, the highest level since February 2011, from an upwardly revised 56.5 in October.
Analysts had expected the manufacturing PMI to tick down to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
“The sector is on course to beat the 0.9% increase in output seen in the third quarter, with the quarterly pace of growth so far in the final quarter tracking comfortably above the 1.0% mark,” Rob Dobson, senior economist at survey compiler Markit, said.
Sterling was boosted late last week after the Bank of England said Thursday it was rolling back stimulus to the U.K. housing market, adding to indications that the economic recovery is deepening.
Sterling rose to 11-month highs against the euro, with EUR/GBP down 0.48% to 0.8259.
In the euro zone, data on Monday showed that the bloc’s manufacturing PMI rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.
The French index fell to 48.4 from 49.1 in October, the lowest level since June.
GBP/USD was up 0.22% to 1.6406, after initially touching highs of 1.6442, the highest level since August 2011.
Cable was likely to find support at 1.6313, Friday’s low and resistance at 1.6450.
The U.K. manufacturing purchasing managers’ index rose to 58.4 in November, the highest level since February 2011, from an upwardly revised 56.5 in October.
Analysts had expected the manufacturing PMI to tick down to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
“The sector is on course to beat the 0.9% increase in output seen in the third quarter, with the quarterly pace of growth so far in the final quarter tracking comfortably above the 1.0% mark,” Rob Dobson, senior economist at survey compiler Markit, said.
Sterling was boosted late last week after the Bank of England said Thursday it was rolling back stimulus to the U.K. housing market, adding to indications that the economic recovery is deepening.
Sterling rose to 11-month highs against the euro, with EUR/GBP down 0.48% to 0.8259.
In the euro zone, data on Monday showed that the bloc’s manufacturing PMI rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.
The French index fell to 48.4 from 49.1 in October, the lowest level since June.