Investing.com - The pound remained lower against the U.S. dollar on Tuesday, after the release of disappointing U.S. data, as an earlier report on U.K. manufacturing activity continued to weigh.
GBP/USD hit 1.6619 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6630, edging down 0.20%.
Cable was likely to find support at 1.6556, the low of March 27 and resistance at 1.6717, the high of March 13.
In a report, the Institute for Supply Management said its index of purchasing managers rose to 53.7 last month from a reading of 53.2 in February. Analysts had expected the manufacturing PMI to increase to 54.0 in March.
The pound came under pressure earlier, after Markit said that its U.K. manufacturing PMI fell to an eight-month low of 55.3 last month from a downwardly revised 56.2 in February. Analysts had expected the manufacturing index to tick up to 56.7.
The decline was due to slower rates of increase for output and new business. New export orders weakened further, with the March report signaling the slowest pace of growth for ten months.
The report noted that the reading was likely to disappoint markets, but said it should be should be seen in the context of near record growth rates seen in the second half of last year.
Employment in the sector increased for the eleventh consecutive month in March, with the rate of jobs growth staying close to February’s near three-year high.
The report also noted that price pressures continued to ease, as input costs fell and selling price inflation slowed to a seven-month low.
Sterling was lower against the euro, with EUR/GBP gaining 0.40% to 0.8296.
In the euro zone, data showed that the unemployment rate remained unchanged at 12.0% in February, in line with expectations.
A separate report showed that the number of unemployed people in Germany declined by 12,000 in February, compared to expectations for a 10,000 drop. The number of unemployed people in January was revised to a 15,000 decline from a previously estimated 14,000 fall.