Investing.com - The pound pulled back from session highs against the dollar on Wednesday following disappointing U.S. economic data, while investors awaited the outcome of the Federal Reserve’s latest policy meeting.
GBP/USD pulled back from 1.5596, the pair’s highest since February 13, to hit 1.5567 during U.S. morning trade, up 0.23%.
Cable was likely to find support at 1.5524, the session low and resistance at 1.5688, the high of February 13.
The pound weakened after data showed that growth in the U.S. manufacturing sector slowed in April.
The Institute for Supply Management said its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, compared to expectations for a decline to 50.9.
The report came on the heels of data showing that the U.S. private sector added fewer-than-expected jobs in April.
ADP nonfarm payrolls rose by 119,000 last month, well below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The report showed that the U.S. manufacturing sector lost 10,000 jobs last month.
The weak data underlined concerns over the U.S. economic recovery as investors awaited the outcome of the Fed’s meeting later in the session for cues on the direction of monetary policy.
Sterling hit session highs against the dollar earlier after data showed that the contraction in the U.K. manufacturing sector slowed in April.
The U.K. manufacturing PMI rose to 49.8 from 48.6 in March, just below the 50 level that separates growth from contraction. Analysts had expected the index to tick down to 48.5.
The pound was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8474.
The single currency remained supported despite growing expectations that the European Central Bank would cut rates at its meeting on Thursday after recent comments by ECB officials indicated that the bank would consider adjusting rates if economic data continued to deteriorate.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March, while inflation fell more-than-expected in April.
GBP/USD pulled back from 1.5596, the pair’s highest since February 13, to hit 1.5567 during U.S. morning trade, up 0.23%.
Cable was likely to find support at 1.5524, the session low and resistance at 1.5688, the high of February 13.
The pound weakened after data showed that growth in the U.S. manufacturing sector slowed in April.
The Institute for Supply Management said its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, compared to expectations for a decline to 50.9.
The report came on the heels of data showing that the U.S. private sector added fewer-than-expected jobs in April.
ADP nonfarm payrolls rose by 119,000 last month, well below expectations for an increase of 150,000.
The previous month’s figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.
The report showed that the U.S. manufacturing sector lost 10,000 jobs last month.
The weak data underlined concerns over the U.S. economic recovery as investors awaited the outcome of the Fed’s meeting later in the session for cues on the direction of monetary policy.
Sterling hit session highs against the dollar earlier after data showed that the contraction in the U.K. manufacturing sector slowed in April.
The U.K. manufacturing PMI rose to 49.8 from 48.6 in March, just below the 50 level that separates growth from contraction. Analysts had expected the index to tick down to 48.5.
The pound was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8474.
The single currency remained supported despite growing expectations that the European Central Bank would cut rates at its meeting on Thursday after recent comments by ECB officials indicated that the bank would consider adjusting rates if economic data continued to deteriorate.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March, while inflation fell more-than-expected in April.