Investing.com - The pound fell to session lows against the broadly stronger dollar on Thursday after the minutes of the Federal Reserve’s latest meeting indicated broad support for plans to start scaling back stimulus measures.
GBP/USD hit 1.5576 during European morning trade, the lowest since August 15; the pair subsequently consolidated at 1.5583, shedding 0.49%.
Cable was likely to find support at 1.5550 and resistance at 1.5664, the session high.
The dollar strengthened after the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
Elsewhere, sterling fell to session lows against the euro, with EUR/GBP advancing 0.51% to 0.8571.
The single currency was boosted after data showed that manufacturing activity in the euro zone expanded at the fastest pace in 26 months in August.
The flash euro zone manufacturing purchasing managers’ index rose to 51.3 in August from a final reading of 50.3 in July. Analysts had expected the index to inch up to 50.8.
Meanwhile, the flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than expectations for a reading of 50.2.
“So far, the third quarter is shaping up to be the best that the euro area has seen in terms of business growth since the spring of 2011”, Chris Williamson, Chief Economist at survey compiler Markit said.
Germany’s manufacturing PMI rose to a 25 month high of 52.0, while the country’s services PMI rose to a six-month high of 52.4.
This offset data showing that the French manufacturing PMI remained unchanged at 49.7 in August, while the French services PMI declined to a two-month low of 47.7.
Earlier Thursday, economic data out of China eased concerns over a slowdown in the world’s second largest economy.
The preliminary reading of China’s HSBC manufacturing PMI rose to a four-month high of 50.1 in August, up from 47.7 in July. Economists had forecast a reading of 48.3.
Investors were looking ahead to U.S. data on initial jobless claims later in the trading day.
GBP/USD hit 1.5576 during European morning trade, the lowest since August 15; the pair subsequently consolidated at 1.5583, shedding 0.49%.
Cable was likely to find support at 1.5550 and resistance at 1.5664, the session high.
The dollar strengthened after the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
Elsewhere, sterling fell to session lows against the euro, with EUR/GBP advancing 0.51% to 0.8571.
The single currency was boosted after data showed that manufacturing activity in the euro zone expanded at the fastest pace in 26 months in August.
The flash euro zone manufacturing purchasing managers’ index rose to 51.3 in August from a final reading of 50.3 in July. Analysts had expected the index to inch up to 50.8.
Meanwhile, the flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than expectations for a reading of 50.2.
“So far, the third quarter is shaping up to be the best that the euro area has seen in terms of business growth since the spring of 2011”, Chris Williamson, Chief Economist at survey compiler Markit said.
Germany’s manufacturing PMI rose to a 25 month high of 52.0, while the country’s services PMI rose to a six-month high of 52.4.
This offset data showing that the French manufacturing PMI remained unchanged at 49.7 in August, while the French services PMI declined to a two-month low of 47.7.
Earlier Thursday, economic data out of China eased concerns over a slowdown in the world’s second largest economy.
The preliminary reading of China’s HSBC manufacturing PMI rose to a four-month high of 50.1 in August, up from 47.7 in July. Economists had forecast a reading of 48.3.
Investors were looking ahead to U.S. data on initial jobless claims later in the trading day.