Investing.com - The pound trimmed losses against the U.S. dollar on Monday, pulling away from a session low after positive U.K. manufacturing data, but sentiment remained under pressure amid sustained concerns over the debt crisis in the euro zone.
GBP/USD pulled back from 1.5642, the daily low, to hit 1.5669 during European afternoon trade, still down 0.22%.
Cable was likely to find support at 1.5614, the low of June 19 and resistance at 1.5770, the high of May 23.
The pound found some support after data showed earlier that manufacturing activity in the U.K. improved in June, although conditions remained fragile.
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.
But 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 region’s debt crisis and uncertainty over how and when the measures can be implemented.
On Friday, European leaders agreed to use the euro zone’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.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.26%, to hit 0.8042.
Later in the day, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.
GBP/USD pulled back from 1.5642, the daily low, to hit 1.5669 during European afternoon trade, still down 0.22%.
Cable was likely to find support at 1.5614, the low of June 19 and resistance at 1.5770, the high of May 23.
The pound found some support after data showed earlier that manufacturing activity in the U.K. improved in June, although conditions remained fragile.
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.
But 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 region’s debt crisis and uncertainty over how and when the measures can be implemented.
On Friday, European leaders agreed to use the euro zone’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.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.26%, to hit 0.8042.
Later in the day, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.