Investing.com - The pound turned lower against the U.S. dollar on Thursday, pulling away from two-week highs as data showing that U.S. sector activity expanded at the fastest rate since March 2011 in August sent the greenback broadly higher.
GBP/USD pulled away from 1.5667, the pair's highest since August 21, to hit 1.5589 during U.S. morning trade, shedding 0.21%.
Cable was likely to find support at 1.5506, the low of September 2 and resistance at 1.5696, the high of August 20 and a two-month high.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high. Analysts had expected the index to fall to 55.0 last month.
Separately, official data showed that U.S. factory orders fell 2.4% in July, less than the expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
The data came after an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than the expected 180,000 increase, after a downwardly revised 198,000 rise the previous month.
Sterling gained some ground against the dollar earlier, after the Bank of England held its benchmark interest rate at 0.50% and kept the size of its asset purchase program unchanged at GBP375 billion.
The BoE had pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
Sterling was higher against the euro with EUR/GBP declining 0.34%, to hit 0.8424.
The euro came under pressure after European Central Bank President Mario Draghi earlier said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.
Speaking at a press confrence at the end of the ECB's policy meeting, Draghi also said that downide risks, including renewed geopolitical tensions, continue to weigh on the outlook for growth.
The comments came after the ECB held its benchmark interest rate at a record-low 0.5%, in line with market expectations.
GBP/USD pulled away from 1.5667, the pair's highest since August 21, to hit 1.5589 during U.S. morning trade, shedding 0.21%.
Cable was likely to find support at 1.5506, the low of September 2 and resistance at 1.5696, the high of August 20 and a two-month high.
The Institute of Supply Management said that its non-manufacturing purchasing managers' index rose to 58.6 in August, from a reading of 56.0 the previous month, hitting ta 29-month high. Analysts had expected the index to fall to 55.0 last month.
Separately, official data showed that U.S. factory orders fell 2.4% in July, less than the expected 3.3% decline, following an upwardly revised 1.6% rise the previous month.
In addition, the Department of Labor said the number of people filing for initial jobless benefits in the week ending August 30 fell by 9,000 to a seasonally adjusted 323,000, compared to forecasts for a decline of 2,000.
The data came after an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than the expected 180,000 increase, after a downwardly revised 198,000 rise the previous month.
Sterling gained some ground against the dollar earlier, after the Bank of England held its benchmark interest rate at 0.50% and kept the size of its asset purchase program unchanged at GBP375 billion.
The BoE had pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
Sterling was higher against the euro with EUR/GBP declining 0.34%, to hit 0.8424.
The euro came under pressure after European Central Bank President Mario Draghi earlier said the central bank's monetary policy will remain accomodative for as long as necessary and that interest rates should remain at present or lower levels for an extended period of time.
Speaking at a press confrence at the end of the ECB's policy meeting, Draghi also said that downide risks, including renewed geopolitical tensions, continue to weigh on the outlook for growth.
The comments came after the ECB held its benchmark interest rate at a record-low 0.5%, in line with market expectations.