Investing.com - The pound was higher against the U.S. dollar on Thursday, after better-than-expected U.S. manufacturing data but sterling’s gains were limited as the Bank of England underlined its concerns over the euro zone’s debt crisis.
GBP/USD hit 1.5756 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5728, gaining 0.16%.
Cable was likely to find support at 1.5581, the low of November 22 and resistance at 1.5887, the high of November 18.
The U.S. Institute for Supply Management said that its index of purchasing managers rose to 52.7 in November, climbing at the fastest pace in five months, after a reading at 50.8 the previous month.
Analysts had expected the index to ease up to 51.5 in November.
Market sentiment was hit earlier, after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly, climbing above 400,000 for the first time in three weeks.
Meanwhile, in its biannual financial stability report, the BOE said that sovereign and banking risks emanating from the euro zone remain the most significant and immediate threat to UK financial stability.
The report came after data showing that manufacturing activity in the U.K. contracted for a second successive month in November.
Earlier Thursday, auctions of French and Spanish government debt met with better-than-expected investor demand, supporting the euro.
The auctions were seen as a major test of investor confidence, coming one day after six major central banks, including the Federal Reserve and the European Central Bank cut the cost of emergency dollar funding for European banks in a coordinated action.
Elsewhere, sterling was lower against the euro with EUR/GBP rising 0.11%, to hit 0.8574.
Also Thursday, ECB President Mario Draghi said the bank was ready to take stronger action to fight the region’s debt crisis if political leaders agree on much tighter budget controls in the euro zone at a summit meeting next week.
GBP/USD hit 1.5756 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5728, gaining 0.16%.
Cable was likely to find support at 1.5581, the low of November 22 and resistance at 1.5887, the high of November 18.
The U.S. Institute for Supply Management said that its index of purchasing managers rose to 52.7 in November, climbing at the fastest pace in five months, after a reading at 50.8 the previous month.
Analysts had expected the index to ease up to 51.5 in November.
Market sentiment was hit earlier, after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly, climbing above 400,000 for the first time in three weeks.
Meanwhile, in its biannual financial stability report, the BOE said that sovereign and banking risks emanating from the euro zone remain the most significant and immediate threat to UK financial stability.
The report came after data showing that manufacturing activity in the U.K. contracted for a second successive month in November.
Earlier Thursday, auctions of French and Spanish government debt met with better-than-expected investor demand, supporting the euro.
The auctions were seen as a major test of investor confidence, coming one day after six major central banks, including the Federal Reserve and the European Central Bank cut the cost of emergency dollar funding for European banks in a coordinated action.
Elsewhere, sterling was lower against the euro with EUR/GBP rising 0.11%, to hit 0.8574.
Also Thursday, ECB President Mario Draghi said the bank was ready to take stronger action to fight the region’s debt crisis if political leaders agree on much tighter budget controls in the euro zone at a summit meeting next week.