Investing.com - " The pound trimmed against the dollar on
Thursday, tracking a slight move lower in the euro after a report
showed that manufacturing and service sector data in the euro zone
fell short of expectations in October.
GBP/USD pulled away from 1.6221, the session low to hit 1.6176
during European morning trade, up just 0.08% for the day.
Cable was likely to find support at 1.6114, the low of October 22
and resistance at 1.6255, Wednesday's high.
The euro eased back from 23-month highs against the dollar after
data indicated that the recovery in the euro zone may be less
robust that was thought.
The preliminary reading of the euro zone's manufacturing purchasing
managers' index ticked up to 51.3 in October from a final reading
of 51.1 in September, slightly below expectations for a reading of
The euro zone services PMI fell to 50.9 this month from 52.2 in
Germany's manufacturing PMI edged up to 51.5 from a final reading
of 51.1 in September, but the services PMI declined to a
three-month low of 52.3.
Manufacturing and service sector activity in France declined
unexpectedly this month.
Market sentiment was boosted earlier Thursday after data showed
that manufacturing activity in China expanded at the fastest rate
in seven months in October.
The data offset fears over the Chinese economy, a day after market
sentiment was hit by concerns that China's central bank would
tighten monetary policy to help control inflation.
The dollar remained under pressure after data earlier in the week
showing that U.S. jobs growth slowed in September cemented
expectations that the Federal Reserve would continue the current
pace of its asset purchase program well into next year.
Elsewhere, sterling was almost unchanged against the euro, with
EUR/GBP dipping 0.01% to 0.8522.
Investors were looking ahead to U.S. data on initial jobless
claims, the trade balance and new home sales later in the trading
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