Investing.com - The pound remained moderately lower against the U.S. dollar on Tuesday, following the release of better-than-expected U.S. economic data as investors awaited the outcome of a series of central bank meetings this week amid hopes for more easing measures.
GBP/USD hit 1.5659 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5676, edging down 0.10%.
Cable was likely to find support at 1.5607, the low of May 29 and resistance at 1.5776, the high of June 20.
Official data showed that U.S. factory orders rose 0.7% in May, beating expectations for a 0.1% increase and following a 0.7% decline the previous month.
A report on Monday showing a contraction in U.S. manufacturing activity in June, for the first time since July 2009, increased the chances that the Federal Reserve may implement a third round of quantitative easing to shore up economic growth.
In the U.K., data showed earlier that construction activity fell at the fastest rate in two-and-a-half years in June, as output and new orders both fell.
Markit and the Chartered Institute of Purchasing & Supply said the construction purchasing managers' index fell to 48.2 in June, from a reading of 54.4 in May, its lowest reading since December 2009 below the 50 level which separates growth from contraction.
Analysts had forecast a more modest decline to 53.0.
The weak data added to speculation that the BoE will implement a fresh round of stimulus measures at Thursday’s meeting, after data on Monday showed that the U.K. manufacturing sector contracted for a second successive month in June.
Elsewhere, the pound was fractionally lower against the euro with EUR/GBP adding 0.09%, to hit 0.8021.
Investors were also looking ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday, amid growing expectations for a rate cut.
GBP/USD hit 1.5659 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5676, edging down 0.10%.
Cable was likely to find support at 1.5607, the low of May 29 and resistance at 1.5776, the high of June 20.
Official data showed that U.S. factory orders rose 0.7% in May, beating expectations for a 0.1% increase and following a 0.7% decline the previous month.
A report on Monday showing a contraction in U.S. manufacturing activity in June, for the first time since July 2009, increased the chances that the Federal Reserve may implement a third round of quantitative easing to shore up economic growth.
In the U.K., data showed earlier that construction activity fell at the fastest rate in two-and-a-half years in June, as output and new orders both fell.
Markit and the Chartered Institute of Purchasing & Supply said the construction purchasing managers' index fell to 48.2 in June, from a reading of 54.4 in May, its lowest reading since December 2009 below the 50 level which separates growth from contraction.
Analysts had forecast a more modest decline to 53.0.
The weak data added to speculation that the BoE will implement a fresh round of stimulus measures at Thursday’s meeting, after data on Monday showed that the U.K. manufacturing sector contracted for a second successive month in June.
Elsewhere, the pound was fractionally lower against the euro with EUR/GBP adding 0.09%, to hit 0.8021.
Investors were also looking ahead to the outcome of the European Central Bank’s monetary policy meeting on Thursday, amid growing expectations for a rate cut.