Investing.com – The pound extended losses against the U.S. dollar on Tuesday, after a report showing that manufacturing activity in the U.K. declined to a seven-month low in April dampened expectations for near-term rate hikes by the Bank of England.
GBP/USD hit 1.6468 during European early afternoon trade, the pair’s lowest since April 27; the pair subsequently consolidated at 1.6484, tumbling 1.02%.
Cable was likely to find support at 1.6384, the low of April 21 and resistance at 1.6660, the days high.
The Markit/CIPS manufacturing purchasing managers’ index fell to 54.6 in April; it’s lowest since September, from a downwardly revised 56.7 in March and well below the expected reading of 56.9.
A reading above 50 indicates that activity increased, while a reading below 50 indicates that it decreased.
Rob Dobson, senior economist at Markit said, "The outlook has deteriorated sharply, with new orders growth having collapsed from a booming pace at the start of the year to only register a weak influx of new business in April”.
The pound was also sharply lower against the euro, with EUR/GBP surging 0.65% to hit 0.8960.
Later Tuesday, the U.S. was to release government data on factory orders.
GBP/USD hit 1.6468 during European early afternoon trade, the pair’s lowest since April 27; the pair subsequently consolidated at 1.6484, tumbling 1.02%.
Cable was likely to find support at 1.6384, the low of April 21 and resistance at 1.6660, the days high.
The Markit/CIPS manufacturing purchasing managers’ index fell to 54.6 in April; it’s lowest since September, from a downwardly revised 56.7 in March and well below the expected reading of 56.9.
A reading above 50 indicates that activity increased, while a reading below 50 indicates that it decreased.
Rob Dobson, senior economist at Markit said, "The outlook has deteriorated sharply, with new orders growth having collapsed from a booming pace at the start of the year to only register a weak influx of new business in April”.
The pound was also sharply lower against the euro, with EUR/GBP surging 0.65% to hit 0.8960.
Later Tuesday, the U.S. was to release government data on factory orders.