Investing.com - The pound remained near 27-month highs against the U.S. dollar on Tuesday, as data showing that activity in the U.K. construction sector expanded at the fastest rate in six years November continued to support demand for sterling.
GBP/USD hit 1.6437 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6403, gaining 0.29%.
Cable was likely to find support at 1.6341, Monday’s low and near-term resistance at 1.6441.
The pound found support after the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007, from 59.4 in October. Analysts had expected the index to tick down to 59.0.
The report said overall activity rose for the seventh month in a row, with "sharp increases” in new orders and employment, while growth in house-building in November was the fastest in 10 years.
“Looking ahead, there are a number of positive signs that improvements in activity levels will be maintained, as job creation picked up again in November and confidence about the business outlook reached its highest level since September 2009,” senior economist at survey compiler Markit Tim Moore said.
The report came a day after data showed that the manufacturing sector in the U.K. expanded at the fastest rate in 33 months in November. The upbeat fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.
Sterling was little changed against the euro, with EUR/GBP inching up 0.01% to hit 0.8279.
Also Tuesday, official data showed that the number of unemployed people in Spain declined by 2,500 in November, confounding expectations for an increase of 44,300, after a 87,000 climb the previous month.
GBP/USD hit 1.6437 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.6403, gaining 0.29%.
Cable was likely to find support at 1.6341, Monday’s low and near-term resistance at 1.6441.
The pound found support after the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007, from 59.4 in October. Analysts had expected the index to tick down to 59.0.
The report said overall activity rose for the seventh month in a row, with "sharp increases” in new orders and employment, while growth in house-building in November was the fastest in 10 years.
“Looking ahead, there are a number of positive signs that improvements in activity levels will be maintained, as job creation picked up again in November and confidence about the business outlook reached its highest level since September 2009,” senior economist at survey compiler Markit Tim Moore said.
The report came a day after data showed that the manufacturing sector in the U.K. expanded at the fastest rate in 33 months in November. The upbeat fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.
Sterling was little changed against the euro, with EUR/GBP inching up 0.01% to hit 0.8279.
Also Tuesday, official data showed that the number of unemployed people in Spain declined by 2,500 in November, confounding expectations for an increase of 44,300, after a 87,000 climb the previous month.