Investing.com -The pound was steady against the U.S. dollar on Tuesday, following improved Chinese manufacturing data but concerns over the escalating crisis in the euro zone weighed.
GBP/USD hit 1.5498 during European morning trade, the session low; the pair subsequently consolidated at 1.5503, dipping 0.01%.
Cable was likely to find support at 1.5412, the low of July 13 and resistance at 1.5623, Monday’s high.
Investor sentiment found support following a report showing that China’s HSBC purchasing managers index improved to 49.5 in July, its highest level since February, from a final reading of 48.2 in June.
While the index remained below the 50 level which indicates contraction, the improvement from the previous month eased worries over a slowdown in the world’s second largest economy.
But concerns over the situation in the euro zone remained in focus after rating’s agency Moody’s cut its outlook on Germany to negative from stable overnight.
Earlier Tuesday, official data showed that manufacturing activity in Germany slowed to the lowest level in more than three years in July, adding to concerns over the impact of the sovereign debt crisis on the bloc’s largest economy.
Investors also remained fearful that Spain will be the next euro zone member to require a full-scale bailout after two regional authorities requested financial assistance from Madrid over the weekend.
Sterling was trading within striking distance of a three-and-a-half year high against the euro, with EUR/GBP dipping 0.06% to 0.7808.
Later in the day, the U.S. was also to release preliminary data on manufacturing activity, while Federal Reserve Chairman Ben Bernanke was to speak.
GBP/USD hit 1.5498 during European morning trade, the session low; the pair subsequently consolidated at 1.5503, dipping 0.01%.
Cable was likely to find support at 1.5412, the low of July 13 and resistance at 1.5623, Monday’s high.
Investor sentiment found support following a report showing that China’s HSBC purchasing managers index improved to 49.5 in July, its highest level since February, from a final reading of 48.2 in June.
While the index remained below the 50 level which indicates contraction, the improvement from the previous month eased worries over a slowdown in the world’s second largest economy.
But concerns over the situation in the euro zone remained in focus after rating’s agency Moody’s cut its outlook on Germany to negative from stable overnight.
Earlier Tuesday, official data showed that manufacturing activity in Germany slowed to the lowest level in more than three years in July, adding to concerns over the impact of the sovereign debt crisis on the bloc’s largest economy.
Investors also remained fearful that Spain will be the next euro zone member to require a full-scale bailout after two regional authorities requested financial assistance from Madrid over the weekend.
Sterling was trading within striking distance of a three-and-a-half year high against the euro, with EUR/GBP dipping 0.06% to 0.7808.
Later in the day, the U.S. was also to release preliminary data on manufacturing activity, while Federal Reserve Chairman Ben Bernanke was to speak.