Investing.com - The pound rose to a session high against the U.S. dollar on Monday, following a report showing that the rate of contraction in the U.K. manufacturing sector eased significantly in August.
GBP/USD hit 1.5898 during European morning trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5889, gaining 0.15%.
Cable was likely to find support at 1.5777, Friday’s low and near-term resistance at 1.5991, the high of August 23 and a three-and-a-half month high.
Markit said that its U.K. manufacturing purchasing managers’ index rose to 49.5 in August from a reading of 45.4 in July, beating expectations for an increase to 46.2.
Output rose solidly at consumer goods producers, while intermediate goods companies saw a marginal return to growth.
The rate of decline in new export orders also eased sharply, despite weak demand from Europe.
Overall market sentiment remained cautious ahead to the European Central Bank's policy setting meeting on Thursday and U.S. jobs data on Friday.
The dollar remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
The pound rose to a session high against the euro, with EUR/GBP falling 0.24% to 0.7910.
Trade looked likely to remain thin on Monday, with markets in the U.S. closed for the Labor Day holiday.
GBP/USD hit 1.5898 during European morning trade, the pair’s highest since August 23; the pair subsequently consolidated at 1.5889, gaining 0.15%.
Cable was likely to find support at 1.5777, Friday’s low and near-term resistance at 1.5991, the high of August 23 and a three-and-a-half month high.
Markit said that its U.K. manufacturing purchasing managers’ index rose to 49.5 in August from a reading of 45.4 in July, beating expectations for an increase to 46.2.
Output rose solidly at consumer goods producers, while intermediate goods companies saw a marginal return to growth.
The rate of decline in new export orders also eased sharply, despite weak demand from Europe.
Overall market sentiment remained cautious ahead to the European Central Bank's policy setting meeting on Thursday and U.S. jobs data on Friday.
The dollar remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.
The pound rose to a session high against the euro, with EUR/GBP falling 0.24% to 0.7910.
Trade looked likely to remain thin on Monday, with markets in the U.S. closed for the Labor Day holiday.