Investing.com - The pound remained lower against the U.S. dollar on Monday, following the release of disappointing U.S. manufacturing data while concerns over the euro zone’s sovereign debt crisis persisted.
GBP/USD hit 1.5642 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5676, falling 0.17%.
Cable was likely to find support at 1.5614, the low of June 19 and resistance at 1.5776, the high of June 20.
Industry data showed that manufacturing activity in the U.S. contracted for the first time since July 2009 in June, adding to concerns over the country’s economic outlook.
The Institute for Supply Management said its index of purchasing managers fell to 49.7 in June from a reading of 53.5 the previous month. Analysts had expected the index to decline to 52.0 in June.
Meanwhile, concerns over the euro zone’s economy re-emerged after official data showed that the unemployment rate in the euro area rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Investors were also wary over the long-term effectiveness of measures announced last week to tackle the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
On Friday, European leaders agreed to use the region’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.53%, to hit 0.8018.
Also Monday, the U.K. manufacturing purchasing managers’ index rose to 48.6 in June from a reading of 45.9 in May, but remained below the 50 level which separates contraction from expansion. Analysts had expected a reading of 46.7.
GBP/USD hit 1.5642 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5676, falling 0.17%.
Cable was likely to find support at 1.5614, the low of June 19 and resistance at 1.5776, the high of June 20.
Industry data showed that manufacturing activity in the U.S. contracted for the first time since July 2009 in June, adding to concerns over the country’s economic outlook.
The Institute for Supply Management said its index of purchasing managers fell to 49.7 in June from a reading of 53.5 the previous month. Analysts had expected the index to decline to 52.0 in June.
Meanwhile, concerns over the euro zone’s economy re-emerged after official data showed that the unemployment rate in the euro area rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Investors were also wary over the long-term effectiveness of measures announced last week to tackle the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
On Friday, European leaders agreed to use the region’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.53%, to hit 0.8018.
Also Monday, the U.K. manufacturing purchasing managers’ index rose to 48.6 in June from a reading of 45.9 in May, but remained below the 50 level which separates contraction from expansion. Analysts had expected a reading of 46.7.