Investing.com - The pound eased back from nine month highs
against the dollar on Tuesday after data showed that U.K.
manufacturing activity slowed slightly in September, but remained
close to August's two-and-a-half year highs.
GBP/USD pulled away from 1.6259, the pair's highest since January
2, to hit 1.6228 during European morning trade, still up 0.22% for
Cable is likely to find support at 1.6127, Monday's low and
near-term resistance at 1.6338, the high of January 2.
Markit said that its U.K. manufacturing purchasing managers' index
fell to 56.7 in September from a downwardly revised reading of 57.1
Analysts had expected the manufacturing PMI to tick up to 57.3.
"U.K. manufacturing continues to boom, adding to the flow of upbeat
data which suggest that the economy is growing faster than almost
anyone expected," Rob Dobson, senior economist at Markit said.
"This stronger than expected performance will raise further
questions in the City with regards to the Bank of England's forward
guidance on interest rates remains appropriate," he added.
The dollar remained broadly lower as the U.S. government began a
partial shutdown after Congress failed to reach an agreement on a
budget for the new financial year. It is the first partial
government shutdown in the U.S. for 17 years.
Republicans have insisted on delaying the implementation of
President Obama's health care reforms as a condition for passing
Sterling was fractionally higher against the euro, with EUR/GBP
dipping 0.06% to 0.8351.
Data released on Tuesday showed that the final reading of the euro
zone manufacturing PMI was unchanged at 51.1 in September, in line
A separate report showed that the number of unemployed people in
Germany rose for the second consecutive month in September, while
the country's jobless rate rose to 6.9% from 6.8% in August.
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