Investing.com - The pound held gains against the dollar on Monday after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in October.
GBP/USD hit 1.5978 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5968, gaining 0.27%.
Cable was likely to find support at 1.5902, the session low and a two-week low and resistance at 1.6045, Friday’s high.
Sterling recovered from two-week lows against the dollar after data showed that the U.K. construction purchasing managers’ index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September.
Economists had expected an unchanged reading.
The report said the housing sector remained the strongest performing area of the sector, while the commercial sector registered the fastest rate of growth since April 2012. Employment levels rose at the steepest rate in six years.
Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
Federal Reserve Bank of Dallas president Richard Fisher said Monday that the recent fiscal standoff in Washington counteracted the role of the Fed’s easy money policies in the economic recovery. The comments came during a speech in Sydney.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.17% to 0.8456.
In the euro zone, data released on Monday showed that euro zone manufacturing activity edged higher in October.
The euro zone manufacturing PMI ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
The euro looked likely to remain under pressure in the run-up the European Central Bank’s monthly meeting on Thursday after data last week showing that euro zone inflation fell to a four year low in October sparked concerns that the bank may cut rates in order to safeguard the fragile economic recovery.
GBP/USD hit 1.5978 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5968, gaining 0.27%.
Cable was likely to find support at 1.5902, the session low and a two-week low and resistance at 1.6045, Friday’s high.
Sterling recovered from two-week lows against the dollar after data showed that the U.K. construction purchasing managers’ index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September.
Economists had expected an unchanged reading.
The report said the housing sector remained the strongest performing area of the sector, while the commercial sector registered the fastest rate of growth since April 2012. Employment levels rose at the steepest rate in six years.
Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
Federal Reserve Bank of Dallas president Richard Fisher said Monday that the recent fiscal standoff in Washington counteracted the role of the Fed’s easy money policies in the economic recovery. The comments came during a speech in Sydney.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.17% to 0.8456.
In the euro zone, data released on Monday showed that euro zone manufacturing activity edged higher in October.
The euro zone manufacturing PMI ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
The euro looked likely to remain under pressure in the run-up the European Central Bank’s monthly meeting on Thursday after data last week showing that euro zone inflation fell to a four year low in October sparked concerns that the bank may cut rates in order to safeguard the fragile economic recovery.