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Forex - GBP/USD holds modest gains after weak U.K. construction PMI

Published 11/04/2014, 04:40 AM
Pound remains moderately higher vs. dollar despite U.K. data
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EUR/GBP
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Investing.com - The pound remained moderately higher against the U.S. dollar on Tuesday, even as data showed that U.K. construction sector activity expanded at the slowest rate in five months in October as investors locked in gains from the greenback's recent rally.

GBP/USD hit 1.6009 during European morning trade, the session high; the pair subsequently consolidated at 1.5994, up 0.13%.

Cable was likely to find support at 1.5873, the low of October 15 and a one-year low and resistance at 1.6100, the high of October 24.

In a report, market research firm Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index declined to 61.4 last month from a reading of 64.2 in September.

Economists had expected the index to fall to 63.5 in October.

Demand for the dollar remained supported after the Insitute of Supply Management reported on Monday that its manufacturing purchasing managers' index rose to 59.0 this month from 56.6 in September. Analysts had expected the index to decline to 56.2 in October.

Sterling was steady against the euro, with EUR/GBP inching up 0.05% to 0.7820.

In the euro zone, official data earlier showed that the number of unemployed people in Spain increased by 79,200 in October, compared to expectations for a 23,400 rise, after an increase of 19,700 in September.

Later in the day, the U.S. was to release trade balance data.

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