Investing.com - The pound remained lower against the U.S. dollar on Monday, as market sentiment was hit by downbeat economic data from the euro zone and amid political uncertainty in France and the Netherlands.
GBP/USD hit 1.6078 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.6080, shedding 0.27%.
Cable was likely to find support at 1.6037, the low of April 20 and resistance at 1.6008, last Thursday’s low and resistance at 1.6147, Friday’s high and a five-month high.
Sentiment waned after data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up by 0.5 points to 48.2 in April.
The preliminary euro zone services PMI slid to 47.9 from 49.2 in March. Analysts had expected the index to ease up by 0.2 points to 49.4.
The data came after a report showing that Chinese manufacturing activity remained in contraction territory in April, fuelling concerns over a slowdown in the world’s second largest economy.
Meanwhile, a political crisis in the Netherlands and uncertainty over the outcome of the French presidential election added to fears over the outlook for the euro zone.
Elsewhere, the pound was close to a 20-month high against the euro, with EUR/GBP sliding 0.41%% to hit 0.8164.
The pound remained supported however after data on Friday showed that U.K. retail sales posted their largest jump in more than a year in March, fueling hopes that the economic recovery has gained traction and dampening expectations for a fresh round of monetary stimulus from the Bank of England.
GBP/USD hit 1.6078 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.6080, shedding 0.27%.
Cable was likely to find support at 1.6037, the low of April 20 and resistance at 1.6008, last Thursday’s low and resistance at 1.6147, Friday’s high and a five-month high.
Sentiment waned after data showed that the euro zone's manufacturing output slumped to its lowest level since June 2009 this month, while its services sector fell to a five month low.
The preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up by 0.5 points to 48.2 in April.
The preliminary euro zone services PMI slid to 47.9 from 49.2 in March. Analysts had expected the index to ease up by 0.2 points to 49.4.
The data came after a report showing that Chinese manufacturing activity remained in contraction territory in April, fuelling concerns over a slowdown in the world’s second largest economy.
Meanwhile, a political crisis in the Netherlands and uncertainty over the outcome of the French presidential election added to fears over the outlook for the euro zone.
Elsewhere, the pound was close to a 20-month high against the euro, with EUR/GBP sliding 0.41%% to hit 0.8164.
The pound remained supported however after data on Friday showed that U.K. retail sales posted their largest jump in more than a year in March, fueling hopes that the economic recovery has gained traction and dampening expectations for a fresh round of monetary stimulus from the Bank of England.