Investing.com - The pound held steady against the U.S. dollar on Tuesday, after data showing that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August added to expectations for the Federal Reserve to soon begin tapering its stimulus program.
GBP/USD hit 1.5530 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5537, easing 0.04%.
Cable was likely to find support at 1.5429, the low of August 28 and resistance at 1.5602, the session high.
In a report, the Institute for Supply Management said its index of purchasing managers rose to a 28-month high of 55.7 in August from a reading of 55.4 in July. Analysts had expected the ISM index of purchasing managers to inch down to 54.0 last month.
The upbeat data reinforced the view that the Fed could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The pound rose to session highs earlier, after Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction PMI rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The latest reading indicated a sharp rise in total business activity and the fastest pace of output expansion in the construction sector since September 2007.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
Last month, the BoE pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
Sterling was higher against the euro with EUR/GBP shedding 0.24%, to hit 0.8468.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.
GBP/USD hit 1.5530 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5537, easing 0.04%.
Cable was likely to find support at 1.5429, the low of August 28 and resistance at 1.5602, the session high.
In a report, the Institute for Supply Management said its index of purchasing managers rose to a 28-month high of 55.7 in August from a reading of 55.4 in July. Analysts had expected the ISM index of purchasing managers to inch down to 54.0 last month.
The upbeat data reinforced the view that the Fed could start to unwind its stimulus program at its upcoming policy meeting on September 17-18.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.
The pound rose to session highs earlier, after Markit and the Chartered Institute of Purchasing & Supply said the U.K. construction PMI rose to 59.1 from 57.0 in July. Economists had forecast a reading of 58.3.
The latest reading indicated a sharp rise in total business activity and the fastest pace of output expansion in the construction sector since September 2007.
The data came one day after a report showed that manufacturing activity in the U.K. jumped to a 30-month high in August, fuelling hopes that the Bank of England may raise interest rates sooner than it has indicated.
Last month, the BoE pledged to keep rates on hold at record lows until the U.K. unemployment rate falls below 7%, something the bank sees as unlikely to happen for another three years.
Sterling was higher against the euro with EUR/GBP shedding 0.24%, to hit 0.8468.
The euro remained under pressure amid expectations that the European Central Bank would reiterate its pledge to keep rates on hold following its policy meeting on Thursday.