Investing.com - The pound held steady against the U.S. dollar on Tuesday, following the release of disappointing manufacturing data from the U.S., while investors remained focused on the European Central Bank’s upcoming policy meeting later in the week.
GBP/USD hit 1.5859 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5876, dipping 0.06%.
Cable was likely to find support at 1.5801, the low of August 28 and resistance at 1.5970, the high of April 17.
Industry data showed earlier that manufacturing activity in the U.S. contracted for the third consecutive month in August.
The Institute for Supply Management said its index of purchasing managers fell by 0.2 points to 49.6 in August from a reading of 49.8 in July. Analysts had expected the ISM index of purchasing managers to ease up by 0.2 points to 50.0.
The report added to expectations that the Federal Reserve may soon implement fresh stimulus measures to boost growth, after Fed Chairman Ben Bernanke said last week that the central bank will act as needed to strengthen the U.S. economic recovery.
Meanwhile, investors eyed the ECB’s monetary policy meeting on Thursday, with hopes the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
On Monday, ECB President Mario Draghi indicated that he would be comfortable buying bonds with maturities of up to about three years, adding that it would not constitute state financing.
Elsewhere, the pound was fractionally higher against the euro with EUR/GBP inching down 0.07%, to hit 0.7920.
Earlier Tuesday, data showed that U.K. construction activity contracted unexpectedly in August, as new orders fell at the sharpest rate since April 2009.
The U.K. construction purchasing managers’ index ticked down to 49.0 in August from a reading of 50.9 the previous month. Analysts had expected the construction PMI to fall to 50.0 in August.
GBP/USD hit 1.5859 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5876, dipping 0.06%.
Cable was likely to find support at 1.5801, the low of August 28 and resistance at 1.5970, the high of April 17.
Industry data showed earlier that manufacturing activity in the U.S. contracted for the third consecutive month in August.
The Institute for Supply Management said its index of purchasing managers fell by 0.2 points to 49.6 in August from a reading of 49.8 in July. Analysts had expected the ISM index of purchasing managers to ease up by 0.2 points to 50.0.
The report added to expectations that the Federal Reserve may soon implement fresh stimulus measures to boost growth, after Fed Chairman Ben Bernanke said last week that the central bank will act as needed to strengthen the U.S. economic recovery.
Meanwhile, investors eyed the ECB’s monetary policy meeting on Thursday, with hopes the bank will give further the details on a long awaited bond-buying program designed to help ease funding pressures for indebted euro zone countries.
On Monday, ECB President Mario Draghi indicated that he would be comfortable buying bonds with maturities of up to about three years, adding that it would not constitute state financing.
Elsewhere, the pound was fractionally higher against the euro with EUR/GBP inching down 0.07%, to hit 0.7920.
Earlier Tuesday, data showed that U.K. construction activity contracted unexpectedly in August, as new orders fell at the sharpest rate since April 2009.
The U.K. construction purchasing managers’ index ticked down to 49.0 in August from a reading of 50.9 the previous month. Analysts had expected the construction PMI to fall to 50.0 in August.