Investing.com - The pound was trading close to session lows against the U.S. dollar on Monday, after a report showed that the U.K. service sector grew at the slowest pace in nearly two years in October, while concerns over a Greek austerity vote and uncertainty over U.S. elections also weighed.
GBP/USD hit 1.5962 during European afternoon trade, the pair’s lowest since October 24; the pair subsequently consolidated at 1.5967, shedding 0.35%.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.6038, the session high.
The U.K. services purchasing managers index fell to 50.6 in October from a reading of 52.2 in September. Analysts had expected the index to ease down to 52.0.
The report said growth of new business eased during the month, leading companies to deplete backlogs of work. Meanwhile, staffing levels were reduced for the second month running.
The weaker-than-expected data fuelled concerns over the outlook for the economic recovery and sparked concerns over the possibility of more easing by the Bank of England.
Overall market sentiment was hit by concerns over whether Greece’s Parliament would approve a package of spending cuts and tax hikes in a vote on Wednesday, which will determine if Athens receives its next tranche of financial aid.
Investors were also focusing on the outcome of Tuesday’s U.S. presidential elections, with opinion polls pointing to a close race between incumbent President Barack Obama and Republican challenger Mitt Romney.
The dollar remained supported after official data on Friday showed that the U.S. economy added 171,000 jobs in October, beating forecasts for an increase of 125,000 and boosting the U.S. economic outlook.
The pound was trading close to a five-week high against the euro, with EUR/GBP sliding 0.17% to 0.7998.
Later Monday, the Institute of Supply Management was to publish data on U.S. service sector activity.
GBP/USD hit 1.5962 during European afternoon trade, the pair’s lowest since October 24; the pair subsequently consolidated at 1.5967, shedding 0.35%.
Cable was likely to find support at 1.5912, the low of October 23 and resistance at 1.6038, the session high.
The U.K. services purchasing managers index fell to 50.6 in October from a reading of 52.2 in September. Analysts had expected the index to ease down to 52.0.
The report said growth of new business eased during the month, leading companies to deplete backlogs of work. Meanwhile, staffing levels were reduced for the second month running.
The weaker-than-expected data fuelled concerns over the outlook for the economic recovery and sparked concerns over the possibility of more easing by the Bank of England.
Overall market sentiment was hit by concerns over whether Greece’s Parliament would approve a package of spending cuts and tax hikes in a vote on Wednesday, which will determine if Athens receives its next tranche of financial aid.
Investors were also focusing on the outcome of Tuesday’s U.S. presidential elections, with opinion polls pointing to a close race between incumbent President Barack Obama and Republican challenger Mitt Romney.
The dollar remained supported after official data on Friday showed that the U.S. economy added 171,000 jobs in October, beating forecasts for an increase of 125,000 and boosting the U.S. economic outlook.
The pound was trading close to a five-week high against the euro, with EUR/GBP sliding 0.17% to 0.7998.
Later Monday, the Institute of Supply Management was to publish data on U.S. service sector activity.