Investing.com - The pound extended losses against the U.S. dollar on Tuesday, falling to a fresh two-day low after strong manufacturing activity data from the U.S. boosted demand for the greenback while euro zone debt concerns continued to weigh on risk sentiment.
GBP/USD hit 1.6186 during U.S. morning trade, the pair’s lowest since April 27; the pair subsequently consolidated at 1.6196, falling 0.25%.
Cable was likely to find support at 1.6157, the low of April 26 and resistance at 1.6279, the high of April 27 and an eight-month high.
The U.S. Institute for Supply Management said the manufacturing purchasing managers’ index rose to 54.8 in April, from 53.4 the previous month.
Analysts had expected the index to fall to 53.0 in April.
The data came after a string of weaker-than-expected U.S. economic reports in recent weeks sparked speculation over further stimulus measures by the Federal Reserve.
In the U.K., the Markit manufacturing purchasing managers' index dropped to 50.5 in April from a downwardly revised 51.9 in March, but remained above the neutral 50.0 mark that separates expansion from contraction.
Analysts had expected the manufacturing PMI to fall to 51.4 last month.
The report underlined concerns over the outlook for the U.K. economy, after official data last week showed that the economy entered a recession in the first quarter, although the pound remained supported by diminished expectations for another round of easing by the Bank of England.
Sterling also remained under pressure amid ongoing concerns over the outlook for the euro zone, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.
Elsewhere, the pound was steady against the euro, with EUR/GBP inching up 0.09% to hit 0.8161.
Trading in the euro zone remained light as markets in France, Germany and Italy were closed due to national holidays.
GBP/USD hit 1.6186 during U.S. morning trade, the pair’s lowest since April 27; the pair subsequently consolidated at 1.6196, falling 0.25%.
Cable was likely to find support at 1.6157, the low of April 26 and resistance at 1.6279, the high of April 27 and an eight-month high.
The U.S. Institute for Supply Management said the manufacturing purchasing managers’ index rose to 54.8 in April, from 53.4 the previous month.
Analysts had expected the index to fall to 53.0 in April.
The data came after a string of weaker-than-expected U.S. economic reports in recent weeks sparked speculation over further stimulus measures by the Federal Reserve.
In the U.K., the Markit manufacturing purchasing managers' index dropped to 50.5 in April from a downwardly revised 51.9 in March, but remained above the neutral 50.0 mark that separates expansion from contraction.
Analysts had expected the manufacturing PMI to fall to 51.4 last month.
The report underlined concerns over the outlook for the U.K. economy, after official data last week showed that the economy entered a recession in the first quarter, although the pound remained supported by diminished expectations for another round of easing by the Bank of England.
Sterling also remained under pressure amid ongoing concerns over the outlook for the euro zone, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.
Elsewhere, the pound was steady against the euro, with EUR/GBP inching up 0.09% to hit 0.8161.
Trading in the euro zone remained light as markets in France, Germany and Italy were closed due to national holidays.