Investing.com - The pound was lower against the U.S. dollar on Wednesday, as markets eyed the release of U.K. economic data on construction activity and net lending to individuals while the greenback remained supported by Tuesday’s strong U.S. manufacturing activity report.
GBP/USD hit 1.6206 during European morning trade, the daily low; the pair subsequently consolidated at 1.6201, falling 0.13%.
Cable was likely to find support at 1.6152, the low of April 27 and short term resistance at 1.6246, Tuesday’s high.
The dollar strengthened after the Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.
The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
Meanwhile, investors remained cautious ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
On Tuesday, the pound came under strong pressure after the U.K. manufacturing purchasing managers' index dropped to 50.5 in April from a downwardly revised 51.9 in March, but remained above the neutral 50.0 mark that separates expansion from contraction.
Analysts had expected the manufacturing PMI to fall to 51.4 last month.
The report underlined concerns over the outlook for the U.K. economy, after official data last week showed that the economy entered a recession in the first quarter.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.34%, to hit 0.8133.
Later in the day, the U.K. was to release data on construction activity, as well as a report by the Bank of England on net lending to individuals.
The U.S. was to produce a report on ADP nonfarm payrolls, as well as government data on factory orders and crude oil stockpiles.
GBP/USD hit 1.6206 during European morning trade, the daily low; the pair subsequently consolidated at 1.6201, falling 0.13%.
Cable was likely to find support at 1.6152, the low of April 27 and short term resistance at 1.6246, Tuesday’s high.
The dollar strengthened after the Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.
The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
Meanwhile, investors remained cautious ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
On Tuesday, the pound came under strong pressure after the U.K. manufacturing purchasing managers' index dropped to 50.5 in April from a downwardly revised 51.9 in March, but remained above the neutral 50.0 mark that separates expansion from contraction.
Analysts had expected the manufacturing PMI to fall to 51.4 last month.
The report underlined concerns over the outlook for the U.K. economy, after official data last week showed that the economy entered a recession in the first quarter.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.34%, to hit 0.8133.
Later in the day, the U.K. was to release data on construction activity, as well as a report by the Bank of England on net lending to individuals.
The U.S. was to produce a report on ADP nonfarm payrolls, as well as government data on factory orders and crude oil stockpiles.