Investing.com - The pound fell to fresh session lows against the U.S. dollar on Monday, after data showed that the U.K. service sector expanded at the slowest pace in 22 months in October.
GBP/USD hit 1.5978 during European morning trade, the pair’s lowest since October 24; the pair subsequently consolidated at 1.5983, shedding 0.25%.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.6038, the session high.
The U.K. services purchasing managers index fell to 50.6 in October from a reading of 52.2 in September. Analysts had expected the index to ease down to 52.0.
The report said growth of new business eased during the month, leading companies to deplete backlogs of work. Meanwhile, staffing levels were reduced for the second month running.
The weaker-than-expected data fuelled concerns over the outlook for the economic recovery and sparked concerns over the possibility of more easing by the Bank of England.
Meanwhile, investors were focused on the outcome of Tuesday’s U.S. presidential elections, amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Market sentiment was also hit by concerns over whether Greece’s Parliament would approve a package of spending cuts and tax hikes in a vote on Wednesday, which will determine if Athens receives its next tranche of financial aid.
The dollar remained supported after official data on Friday showed that the U.S. economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.
The pound was fractionally higher against the euro, with EUR/GBP dipping 0.07% to 0.8006.
Later Monday, the Institute of Supply Management was to publish data on U.S. service sector activity.
GBP/USD hit 1.5978 during European morning trade, the pair’s lowest since October 24; the pair subsequently consolidated at 1.5983, shedding 0.25%.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.6038, the session high.
The U.K. services purchasing managers index fell to 50.6 in October from a reading of 52.2 in September. Analysts had expected the index to ease down to 52.0.
The report said growth of new business eased during the month, leading companies to deplete backlogs of work. Meanwhile, staffing levels were reduced for the second month running.
The weaker-than-expected data fuelled concerns over the outlook for the economic recovery and sparked concerns over the possibility of more easing by the Bank of England.
Meanwhile, investors were focused on the outcome of Tuesday’s U.S. presidential elections, amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Market sentiment was also hit by concerns over whether Greece’s Parliament would approve a package of spending cuts and tax hikes in a vote on Wednesday, which will determine if Athens receives its next tranche of financial aid.
The dollar remained supported after official data on Friday showed that the U.S. economy added 171,000 jobs in October, beating forecasts for an increase of 125,000. The unemployment rate ticked up to 7.9% from 7.8% in September as more people re-entered the labor force.
The pound was fractionally higher against the euro, with EUR/GBP dipping 0.07% to 0.8006.
Later Monday, the Institute of Supply Management was to publish data on U.S. service sector activity.