Investing.com – The pound trimmed losses against the U.S. dollar on Monday, pulling away from a one-week low after a report showing that manufacturing activity in the U.K. rebounded from a 26-month low in September.
GBP/USD pulled back from 1.5484, the pair’s lowest since September 26, to hit 1.5518 during early European trade, still down 0.40%.
Cable was likely to find support at 1.5431, the low of September 26 and resistance at 1.5664, last Friday’s high.
The Markit/CIPS manufacturing purchasing managers’ index rose to 51.1 last month from an upwardly revised 49.4 in August. The reading was well above forecasts of 48.6 and above the 50 level that separates growth from contraction.
However, the report said growth remained below the levels seen at the beginning of the year and that the contribution of the manufacturing sector to the overall economic recovery looked likely to remain “modest, at best” for the remainder of the year.
Sterling remained under pressure as concerns over a possible default by Greece weighed on market sentiment and amid ongoing speculation that the Bank of England may implement fresh stimulus measures to shore up the faltering U.K. economy.
The pound was also lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8594.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.
GBP/USD pulled back from 1.5484, the pair’s lowest since September 26, to hit 1.5518 during early European trade, still down 0.40%.
Cable was likely to find support at 1.5431, the low of September 26 and resistance at 1.5664, last Friday’s high.
The Markit/CIPS manufacturing purchasing managers’ index rose to 51.1 last month from an upwardly revised 49.4 in August. The reading was well above forecasts of 48.6 and above the 50 level that separates growth from contraction.
However, the report said growth remained below the levels seen at the beginning of the year and that the contribution of the manufacturing sector to the overall economic recovery looked likely to remain “modest, at best” for the remainder of the year.
Sterling remained under pressure as concerns over a possible default by Greece weighed on market sentiment and amid ongoing speculation that the Bank of England may implement fresh stimulus measures to shore up the faltering U.K. economy.
The pound was also lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8594.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.