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Forex - EUR/GBP extends losses as U.K. construction PMI rebounds

Published 02/02/2011, 05:01 AM
GBP/USD
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EUR/GBP
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Investing.com – The euro extended losses against the pound on Wednesday, after data showed that construction activity in the U.K. rebounded in January, helped by better weather and a rise in new business.

EUR/GBP hit 0.8524 during European morning trade, the daily low; the pair subsequently consolidated at 0.8527, shedding 0.43%.

The pair was likely to find support at 0.8459, the low of January 21 and resistance at 0.8619, the high of January 31.

The Markit/CIPS purchasing managers index rose to 53.7 in January from December's reading of 49.1, which had been the first fall in 10 months, due to an unexpectedly severe start to the winter.

"Companies reported that January's improvement in part reflected a rebound from harsh weather in December, which had contributed to the first fall in activity since February of last year," Markit said.

The pound was also higher against the U.S. dollar, with GBP/USD climbing 0.4% to hit 1.6209.

Earlier Wednesday, Bank of England policymaker Andrew Sentance said the longer the central bank delayed taking action against rising inflation the bigger the threat to its credibility.


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