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Forex - GBP/USD rises to 2-day high after flurry of U.S. data

Published 09/01/2010, 10:47 AM
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Investing.com – The pound was up against the U.S. dollar on Wednesday, rising to a 2-day high, after a flurry of U.S. data showed that manufacturing activity increased, while non-farm employment declined unexpectedly in August. 

GBP/USD hit 1.5490 during European afternoon trade, the pair’s highest since August 30; the pair subsequently consolidated at 1.5472, gaining 0.79%.

Cable was likely to find support at 1.5326, Tuesday’s low, and resistance at 1.5575, the high of August 30.

Earlier in the day, the U.S. Institute for Supply Management said its index of purchasing managers increased to 56.3 in August, after falling to 55.5 in July.

Analysts had expected the index of purchasing managers to fall to 53.0 in August.

Meanwhile, a separate report from payroll processing firm ADP said non-farm private employment declined by a seasonally adjusted 10K in August, after increasing by a revised 37K in July.

Analysts had expected non-farm private sector employment to increase by 13K in August.

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.31% to hit 0.8288.

Earlier Wednesday, industry data showed that manufacturing activity in the U.K. fell to its lowest level in 9 months during August. 


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