Investing.com - The pound was lower against the U.S. dollar on Monday, but remained supported close to an eight-month high amid sustained concerns over Spain’s debt crisis as mixed U.S. data and fresh easing expectations from the Federal Reserve weighed on the greenback.
GBP/USD hit 1.6234 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.6248, falling 0.10%.
Cable was likely to find support at 1.6157, the low of April 26 and resistance at 1.6300, the day’s high and an eight-month high.
Sentiment came under pressure earlier after official data confirmed that the Spain’s economy entered a recession in the first quarter, with gross domestic product contracting by 0.3% in the three months to March and 0.4% year-on-year.
The data came after ratings agency Standard & Poor’s announced widespread credit ratings downgrades on Spain’s troubled banking sector, following a two notch downgrade of the country’s sovereign credit rating last week.
In the U.S., the Bureau of Economic Analysis said its seasonally adjusted core personal consumption expenditure price index rose by 0.2% in March, in line with expectations, after rising by 0.1% in February.
The report also showed that personal spending rose 0.3% in March, below expectations for a 0.4% gain. Personal spending for February was revised to a 0.9% increase from a previously reported 0.8% gain.
Meanwhile, a separate report showed that a purchasing managers’ index for Chicago fell to 56.2 in April, the lowest level since November 2009, from a reading of 62.2 the previous month. Analysts had expected the PMI to fall to 60.9 in April.
The greenback also remained under pressure amid expectations for further stimulus measures by the Fed after the U.S. Commerce Department said on Friday that gross domestic product expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
Elsewhere, the pound was steady against the euro with EUR/GBP edging down 0.04%, to hit 0.8145.
Also Monday, official data showed that consumer price inflation in the euro zone remained unchanged at 2.6% in April, but was higher than forecasts for a reading of 2.5%, dampening expectations for a rate cut by the European Central Bank.
GBP/USD hit 1.6234 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.6248, falling 0.10%.
Cable was likely to find support at 1.6157, the low of April 26 and resistance at 1.6300, the day’s high and an eight-month high.
Sentiment came under pressure earlier after official data confirmed that the Spain’s economy entered a recession in the first quarter, with gross domestic product contracting by 0.3% in the three months to March and 0.4% year-on-year.
The data came after ratings agency Standard & Poor’s announced widespread credit ratings downgrades on Spain’s troubled banking sector, following a two notch downgrade of the country’s sovereign credit rating last week.
In the U.S., the Bureau of Economic Analysis said its seasonally adjusted core personal consumption expenditure price index rose by 0.2% in March, in line with expectations, after rising by 0.1% in February.
The report also showed that personal spending rose 0.3% in March, below expectations for a 0.4% gain. Personal spending for February was revised to a 0.9% increase from a previously reported 0.8% gain.
Meanwhile, a separate report showed that a purchasing managers’ index for Chicago fell to 56.2 in April, the lowest level since November 2009, from a reading of 62.2 the previous month. Analysts had expected the PMI to fall to 60.9 in April.
The greenback also remained under pressure amid expectations for further stimulus measures by the Fed after the U.S. Commerce Department said on Friday that gross domestic product expanded at a rate of 2.2% in the three months to March, below expectations for a 2.5% increase.
Elsewhere, the pound was steady against the euro with EUR/GBP edging down 0.04%, to hit 0.8145.
Also Monday, official data showed that consumer price inflation in the euro zone remained unchanged at 2.6% in April, but was higher than forecasts for a reading of 2.5%, dampening expectations for a rate cut by the European Central Bank.