Investing.com - The pound pushed higher against the dollar on
Monday but gains looked likely to remain limited after data showed
that the U.K. construction sector remained in contraction territory
in January, underlining concerns over the faltering economy.
GBP/USD hit 1.5740 during European morning trade, the session high;
the pair subsequently consolidated at 1.5721, gaining 0.15%.
Cable was likely to find support at 1.5689, the session low and an
almost five month low and resistance at 1.5772, the high of January
The U.K. construction purchasing managers' index held steady at a
48.7 in January, unchanged from December's reading, disappointing
expectations for an improvement to 49.1.
The weak data fuelled concerns over the outlook for the U.K.
economy, which contracted by 0.3% in the three months to December.
Market sentiment was hit by fresh concerns over the euro zone as an
escalating political crisis in Spain pushed the country's borrowing
Spanish Prime Minister Mariano Rajoy faced calls to resign,
following corruption allegations against him and senior officials
in the ruling Popular Party.
The yield on Spanish 10-year bonds rose to 5.41% on Monday from
5.21% on Friday, as investor concerns over the deepening political
The euro retreated from 15-month highs against the pound, with
EUR/GBP dropping 0.72% to 0.8628.
The U.S. was to release official data on factory orders later in
the trading day.
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