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Forex - Pound slips lower vs. dollar in subdued trade

Published 01/07/2014, 04:13 AM
Pound slides lower against dollar
GBP/USD
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EUR/GBP
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Investing.com - The pound slid lower against the dollar on Tuesday, as the dollar regained ground lost in the previous session after data showed that activity in the U.S. services sector slowed for a second month in December.

GBP/USD touched session low of 1.6377 and was last down 0.17% to 1.6379.

Cable was likely to find support at 1.6336, Monday’s low and the weakest since December 24 and resistance at 1.6475.

The dollar slid after the Institute of Supply Management said Monday that its non-manufacturing purchasing manager's index declined to 53.0 in December from 53.9 in November. Analysts had expected the index to increase to 54.5.

The ISM said the new orders index contracted for the first time since July 2009, falling to 49.4.

Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.

Sterling was slightly lower against the euro, with EUR/GBP rising 0.16% to 0.8318.

In the euro zone, data released on Tuesday showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000.

The country’s unemployment rate remained steady at 6.9%.




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