Investing.com - The pound pulled back from 27-month highs against the dollar on Monday, as the dollar continued to push higher against the yen, but sterling remained supported after data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.
GBP/USD retreated from 1.6442, the pair’s highest since August 2011, to trade at 1.6386, just 0.09% higher for the day.
Cable was likely to find support at 1.6313, Friday’s low and resistance at 1.6450.
The greenback advanced to fresh six-month highs against the yen on Monday after Bank of Japan Governor Haruhiko Kuroda fuelled expectations that the bank will step up measures to hit its inflation target, saying the BoJ would adjust monetary policy “without hesitation."
Demand for sterling continued to be underpinned after data on Monday showed that the U.K. manufacturing purchasing managers’ index rose to 58.4 last month, the highest level since February 2011, from an upwardly revised 56.5 in October.
Analysts had expected the manufacturing PMI to tick down to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
“The sector is on course to beat the 0.9% increase in output seen in the third quarter, with the quarterly pace of growth so far in the final quarter tracking comfortably above the 1.0% mark,” Rob Dobson, senior economist at survey compiler Markit, said.
Elsewhere, sterling rose to 11-month highs against the euro, with EUR/GBP down 0.49% to 0.8258.
In the euro zone, data on Monday showed that the bloc’s manufacturing PMI rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.
The French index fell to 48.4 from 49.1 in October, the lowest level since June.
GBP/USD retreated from 1.6442, the pair’s highest since August 2011, to trade at 1.6386, just 0.09% higher for the day.
Cable was likely to find support at 1.6313, Friday’s low and resistance at 1.6450.
The greenback advanced to fresh six-month highs against the yen on Monday after Bank of Japan Governor Haruhiko Kuroda fuelled expectations that the bank will step up measures to hit its inflation target, saying the BoJ would adjust monetary policy “without hesitation."
Demand for sterling continued to be underpinned after data on Monday showed that the U.K. manufacturing purchasing managers’ index rose to 58.4 last month, the highest level since February 2011, from an upwardly revised 56.5 in October.
Analysts had expected the manufacturing PMI to tick down to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
“The sector is on course to beat the 0.9% increase in output seen in the third quarter, with the quarterly pace of growth so far in the final quarter tracking comfortably above the 1.0% mark,” Rob Dobson, senior economist at survey compiler Markit, said.
Elsewhere, sterling rose to 11-month highs against the euro, with EUR/GBP down 0.49% to 0.8258.
In the euro zone, data on Monday showed that the bloc’s manufacturing PMI rose to a two year high of 51.6 last month from October's 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.
The French index fell to 48.4 from 49.1 in October, the lowest level since June.