Investing.com - The pound trimmed gains against the U.S. dollar on Thursday, as weaker-than-expected U.K. manufacturing data undermined hopes for a sustained economic recovery.
GBP/USD pulled back from 1.6167, the pair’s highest since October 18, to hit 1.6149 during European morning trade, still up 13% for the day.
Cable was likely to find support at 1.6067, Wednesday’s low and resistance at 1.6177, the high of October 17.
The Markit U.K. manufacturing purchasing managers’ index fell to 47.5 in October from a reading of 48.4 in September, compared to expectations for a dip to 48.1.
The report showed that manufacturers cut production for the fourth month, while new orders fell at a faster rate than in September as export demand remained weak.
The weak data sparked renewed concerns over the possibility of more easing by the Bank of England.
The pound hit a two-week high against the dollar earlier after a report by U.K. mortgage lender Nationwide showed that house prices rose 0.6% in October, better than expectations for a 0.2% increase.
Overall market sentiment continued to be weighed by uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Investors also remained cautious ahead of U.S. data on nonfarm payrolls on Friday and the U.S. presidential elections next week.
The pound was higher against the euro, with EUR/GBP down 0.33% to 0.8008.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims.
In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.
GBP/USD pulled back from 1.6167, the pair’s highest since October 18, to hit 1.6149 during European morning trade, still up 13% for the day.
Cable was likely to find support at 1.6067, Wednesday’s low and resistance at 1.6177, the high of October 17.
The Markit U.K. manufacturing purchasing managers’ index fell to 47.5 in October from a reading of 48.4 in September, compared to expectations for a dip to 48.1.
The report showed that manufacturers cut production for the fourth month, while new orders fell at a faster rate than in September as export demand remained weak.
The weak data sparked renewed concerns over the possibility of more easing by the Bank of England.
The pound hit a two-week high against the dollar earlier after a report by U.K. mortgage lender Nationwide showed that house prices rose 0.6% in October, better than expectations for a 0.2% increase.
Overall market sentiment continued to be weighed by uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Investors also remained cautious ahead of U.S. data on nonfarm payrolls on Friday and the U.S. presidential elections next week.
The pound was higher against the euro, with EUR/GBP down 0.33% to 0.8008.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims.
In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.