Investing.com - The pound remained higher against the U.S. dollar on Monday, as data showing that activity in the U.K. construction sector expanded at the fastest rate in six years in October continued to support demand for sterling.
GBP/USD hit 1.5978 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5962, adding 0.22%.
Cable was likely to find support at 1.5902, the session low and a two-week low and resistance at 1.6045, Friday’s high.
The pound remained supported after data showed that the U.K. construction purchasing managers’ index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September.
Economists had expected an unchanged reading.
The report said the housing sector remained the strongest performing area of the sector, while the commercial sector registered the fastest rate of growth since April 2012. Employment levels rose at the steepest rate in six years.
Meanwhile, demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
Investors shrugged off a report on Monday showed that U.S. factory orders rose 1.7% from a month earlier in September, in line with expectations.
Sterling was little changed against the euro with EUR/GBP easing 0.04%, to hit 0.8468.
In the euro zone, data released on Monday showed that euro zone manufacturing activity edged higher in October.
The euro zone manufacturing PMI ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
GBP/USD hit 1.5978 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5962, adding 0.22%.
Cable was likely to find support at 1.5902, the session low and a two-week low and resistance at 1.6045, Friday’s high.
The pound remained supported after data showed that the U.K. construction purchasing managers’ index rose to 59.4 last month, the highest level since September 2007, from 58.9 in September.
Economists had expected an unchanged reading.
The report said the housing sector remained the strongest performing area of the sector, while the commercial sector registered the fastest rate of growth since April 2012. Employment levels rose at the steepest rate in six years.
Meanwhile, demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.
Investors shrugged off a report on Monday showed that U.S. factory orders rose 1.7% from a month earlier in September, in line with expectations.
Sterling was little changed against the euro with EUR/GBP easing 0.04%, to hit 0.8468.
In the euro zone, data released on Monday showed that euro zone manufacturing activity edged higher in October.
The euro zone manufacturing PMI ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.