Investing.com - The pound held steady against the U.S. dollar on Thursday, after the release of worse than expected U.K. manufacturing data while investors eyed upcoming U.S. economic reports to be released later in the trading session.
GBP/USD hit 1.6544 during European morning trade, the pair's lowest since December 31; the pair subsequently consolidated at 1.6555, easing 0.03%.
Cable was likely to find support at 1.6475, the low of December 31 and resistance at 1.6604, the session high.
Markit research group said that its U.K. manufacturing purchasing managers' index fell to 57.3 last month from a reading of 58.1 in November. Analysts had expected the manufacturing PMI to ease down to 58.0 in December.
Meanwhile, the greenback remained supported after the Conference Board on Tuesday said that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November. Analysts had expected the index to rise to 76.0 this month.
The data came after Standard & Poor’s with Case-Shiller said that its house price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February 2006 and above forecasts for an increase of 13%.
The strong reports added to expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Sterling was higher against the euro, with EUR/GBP slipping 0.19% to 0.8292.
In the euro zone, Markit said its final manufacturing PMI for the bloc remained unchanged at 52.7 last month, in line with expectations.
A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December, from a reading of 54.2 the previous month. Analysts had expected the index to remain unchanged last month.
Later in the day, the U.S. was to produce weekly jobless claims data as well as a report by the Institute of Supply Management on manufacturing activity.
GBP/USD hit 1.6544 during European morning trade, the pair's lowest since December 31; the pair subsequently consolidated at 1.6555, easing 0.03%.
Cable was likely to find support at 1.6475, the low of December 31 and resistance at 1.6604, the session high.
Markit research group said that its U.K. manufacturing purchasing managers' index fell to 57.3 last month from a reading of 58.1 in November. Analysts had expected the manufacturing PMI to ease down to 58.0 in December.
Meanwhile, the greenback remained supported after the Conference Board on Tuesday said that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November. Analysts had expected the index to rise to 76.0 this month.
The data came after Standard & Poor’s with Case-Shiller said that its house price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February 2006 and above forecasts for an increase of 13%.
The strong reports added to expectations for further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Sterling was higher against the euro, with EUR/GBP slipping 0.19% to 0.8292.
In the euro zone, Markit said its final manufacturing PMI for the bloc remained unchanged at 52.7 last month, in line with expectations.
A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December, from a reading of 54.2 the previous month. Analysts had expected the index to remain unchanged last month.
Later in the day, the U.S. was to produce weekly jobless claims data as well as a report by the Institute of Supply Management on manufacturing activity.