Investing.com - The pound trimmed gains against the U.S. dollar on Wednesday, after a string of disappointing data out of the euro zone fuelled concerns over the economic impact of the region’s debt crisis.
GBP/USD pulled back from 1.5999, the session high, to hit 1.5972 during European morning trade, still up 0.13% for the day.
Cable was likely to find near-term support at 1.5912, Tuesday’s low and a six-week low and resistance at 1.6023, Tuesday’s high.
The dollar found broad support after data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to concerns over the euro zone’s largest economy.
Elsewhere, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.
Market sentiment remained somewhat supported after a report earlier showed that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.
Sentiment on sterling remained underpinned after comments by Bank of England Governor Mervyn King dampened expectations for more easing by the central bank.
In a speech late Tuesday, Governor King said policymakers would have to think "long and hard" before implementing further quantitative easing measures.
Investors were anticipating preliminary data on U.K. economic growth on Thursday, amid expectations that the report will show that the economy expanded in the third quarter, following three successive quarters of contraction.
The pound was trading at a more than one-week high against the euro, with EUR/GBP down 0.57% to 0.8094.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.
GBP/USD pulled back from 1.5999, the session high, to hit 1.5972 during European morning trade, still up 0.13% for the day.
Cable was likely to find near-term support at 1.5912, Tuesday’s low and a six-week low and resistance at 1.6023, Tuesday’s high.
The dollar found broad support after data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
A separate report showed that the euro zone’s service’s PMI inched up to 46.2 in October from 46.1 last month.
Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to concerns over the euro zone’s largest economy.
Elsewhere, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.
Market sentiment remained somewhat supported after a report earlier showed that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.
Sentiment on sterling remained underpinned after comments by Bank of England Governor Mervyn King dampened expectations for more easing by the central bank.
In a speech late Tuesday, Governor King said policymakers would have to think "long and hard" before implementing further quantitative easing measures.
Investors were anticipating preliminary data on U.K. economic growth on Thursday, amid expectations that the report will show that the economy expanded in the third quarter, following three successive quarters of contraction.
The pound was trading at a more than one-week high against the euro, with EUR/GBP down 0.57% to 0.8094.
Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.
Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.