Investing.com - The pound fell to a fresh session low against the U.S. dollar on Monday, amid fresh concerns over the outlook for the global economy, after data showed that manufacturing activity in Germany slowed to the lowest level in almost three years in April.
GBP/USD hit 1.6080 during European morning trade, the session low; the pair subsequently consolidated at 1.6092, shedding 0.18%.
Cable was likely to find support at 1.6008, last Thursday’s low and resistance at 1.6147, Friday’s high and a five-month high.
Markit said that its preliminary German manufacturing purchasing managers’ index declined to a seasonally adjusted 46.3 from a final reading of 48.4 in March. Analysts had expected the index to rise to 49.0 in April.
A separate report showed that while France’s manufacturing index ticked higher, the country’s services PMI slowed to its slowest pace in six months in April.
The data came after a report showing that Chinese manufacturing activity remained in contraction territory in April, fuelling concerns over a slowdown in the world’s second largest economy.
Meanwhile, a political crisis in the Netherlands and uncertainty over the outcome of the French presidential election added to fears over the outlook for the euro zone.
Elsewhere, the pound was close to a 20-month high against the euro, with EUR/GBP shedding 0.32% to hit 0.8171.
The pound remained supported following Friday’s better-than-expected U.K. retail sales data and amid diminished expectations for a fresh round of monetary stimulus from the Bank of England
GBP/USD hit 1.6080 during European morning trade, the session low; the pair subsequently consolidated at 1.6092, shedding 0.18%.
Cable was likely to find support at 1.6008, last Thursday’s low and resistance at 1.6147, Friday’s high and a five-month high.
Markit said that its preliminary German manufacturing purchasing managers’ index declined to a seasonally adjusted 46.3 from a final reading of 48.4 in March. Analysts had expected the index to rise to 49.0 in April.
A separate report showed that while France’s manufacturing index ticked higher, the country’s services PMI slowed to its slowest pace in six months in April.
The data came after a report showing that Chinese manufacturing activity remained in contraction territory in April, fuelling concerns over a slowdown in the world’s second largest economy.
Meanwhile, a political crisis in the Netherlands and uncertainty over the outcome of the French presidential election added to fears over the outlook for the euro zone.
Elsewhere, the pound was close to a 20-month high against the euro, with EUR/GBP shedding 0.32% to hit 0.8171.
The pound remained supported following Friday’s better-than-expected U.K. retail sales data and amid diminished expectations for a fresh round of monetary stimulus from the Bank of England