Investing.com - The pound trimmed against the dollar on Thursday, tracking a slight move lower in the euro after a report showed that manufacturing and service sector data in the euro zone fell short of expectations in October.
GBP/USD pulled away from 1.6221, the session low to hit 1.6176 during European morning trade, up just 0.08% for the day.
Cable was likely to find support at 1.6114, the low of October 22 and resistance at 1.6255, Wednesday’s high.
The euro eased back from 23-month highs against the dollar after data indicated that the recovery in the euro zone may be less robust that was thought.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September.
Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, but the services PMI declined to a three-month low of 52.3.
Manufacturing and service sector activity in France declined unexpectedly this month.
Market sentiment was boosted earlier Thursday after data showed that manufacturing activity in China expanded at the fastest rate in seven months in October.
The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.
The dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.
Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP dipping 0.01% to 0.8522.
Investors were looking ahead to U.S. data on initial jobless claims, the trade balance and new home sales later in the trading day.
GBP/USD pulled away from 1.6221, the session low to hit 1.6176 during European morning trade, up just 0.08% for the day.
Cable was likely to find support at 1.6114, the low of October 22 and resistance at 1.6255, Wednesday’s high.
The euro eased back from 23-month highs against the dollar after data indicated that the recovery in the euro zone may be less robust that was thought.
The preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4.
The euro zone services PMI fell to 50.9 this month from 52.2 in September.
Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, but the services PMI declined to a three-month low of 52.3.
Manufacturing and service sector activity in France declined unexpectedly this month.
Market sentiment was boosted earlier Thursday after data showed that manufacturing activity in China expanded at the fastest rate in seven months in October.
The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.
The dollar remained under pressure after data earlier in the week showing that U.S. jobs growth slowed in September cemented expectations that the Federal Reserve would continue the current pace of its asset purchase program well into next year.
Elsewhere, sterling was almost unchanged against the euro, with EUR/GBP dipping 0.01% to 0.8522.
Investors were looking ahead to U.S. data on initial jobless claims, the trade balance and new home sales later in the trading day.