Investing.com - The pound held gains against the U.S. dollar on Monday, as upbeat U.K. manufacturing data continued to support demand for sterling, while fears of an imminent military strike against Syria eased.
GBP/USD hit 1.5593 during U.S. morning trade, the pair's highest since August 26; the pair subsequently consolidated at 1.5574, gaining 0.44%.
Cable was likely to find support at 1.5506, the session low and resistance at 1.5672, the high of August 19.
Sterling strengthened against the dollar after Markit research group said the U.K.'s manufacturing purchasing managers' index rose to a 30-month high of 57.2 in August from an upwardly revised reading of 54.8 in July.
Analysts had expected the manufacturing PMI to ease up to 55.0 last month.
The data showed that output and new orders rose at the fastest pace since 1994 last month, indicated that the manufacturing sector maintained its robust start to the third quarter of 2013.
In the U.S., President Barack Obama launched a political offensive on Sunday to persuade Congress to approve a military strike against Syria, but faced a struggle to win over lawmakers from both parties.
Congress will only debate a Syria strike when it returns from its summer recess on September 9, delaying any possible response to a chemical gas attackthat is believed to have killed hundreds of civilians last month.
Sterling was also higher against the euro with EUR/GBP shedding 0.60%, to hit 0.8475.
In the euro zone, Markit research group said its final manufacturing PMI rose to 51.4 in August, from a reading of 51.3 the previous month, hitting the highest level since July 2011. Analysts had expected the index to remain unchanged last month.
Markit said Spain's manufacturing PMI rose to 51.1 in August, from a reading of 49.8 the previous month, hitting its highest level since April 2011. Analysts had expected the index to rise to 50.8 last month.
Trading volumes were expected to remain light on Monday, with U.S. markets closed for the Labor Day holiday.
GBP/USD hit 1.5593 during U.S. morning trade, the pair's highest since August 26; the pair subsequently consolidated at 1.5574, gaining 0.44%.
Cable was likely to find support at 1.5506, the session low and resistance at 1.5672, the high of August 19.
Sterling strengthened against the dollar after Markit research group said the U.K.'s manufacturing purchasing managers' index rose to a 30-month high of 57.2 in August from an upwardly revised reading of 54.8 in July.
Analysts had expected the manufacturing PMI to ease up to 55.0 last month.
The data showed that output and new orders rose at the fastest pace since 1994 last month, indicated that the manufacturing sector maintained its robust start to the third quarter of 2013.
In the U.S., President Barack Obama launched a political offensive on Sunday to persuade Congress to approve a military strike against Syria, but faced a struggle to win over lawmakers from both parties.
Congress will only debate a Syria strike when it returns from its summer recess on September 9, delaying any possible response to a chemical gas attackthat is believed to have killed hundreds of civilians last month.
Sterling was also higher against the euro with EUR/GBP shedding 0.60%, to hit 0.8475.
In the euro zone, Markit research group said its final manufacturing PMI rose to 51.4 in August, from a reading of 51.3 the previous month, hitting the highest level since July 2011. Analysts had expected the index to remain unchanged last month.
Markit said Spain's manufacturing PMI rose to 51.1 in August, from a reading of 49.8 the previous month, hitting its highest level since April 2011. Analysts had expected the index to rise to 50.8 last month.
Trading volumes were expected to remain light on Monday, with U.S. markets closed for the Labor Day holiday.