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Forex - GBP/USD slides as U.K. manufacturing data disappoints

Posted: 2/1/2013 3:18:00 PM
Referenced Stocks: - The pound fell against the dollar on Friday after weak U.K. manufacturing data fueled growing concerns that the economy is facing strengthening headwinds.

In U.S. trading on Friday, GBP/USD was trading at 1.5714, down 0.91%, up from a session low of 1.5713 and off from a high of 1.5879.

The pair was likely to find support at 1.5675, Monday's low, and resistance at 1.5879, the session high.

Earlier Friday, the Markit research group reported that the U.K. manufacturing purchasing managers' index fell to 50.8 in January from 51.2 in December, outpacing analysts' calls for a decline to 51.0.

The pound slid amid an otherwise risk-on trading day on sentiments U.K. recovery may be waning.

Data last week revealed that the U.K. economy contracted 0.3% in the fourth quarter, putting Britain on track for a triple-dip recession.

Meanwhile in the U.S., the U.S. Bureau of Labor Statistics reported that the economy added a net 157,000 jobs in January, roughly in line with expectations for a gain of 160,000.

December's numbers were revised to 196,000 from 155,000, while November's figures were revised to 247,000 from 161,000.

The headline unemployment rate rose to 7.9% from 7.8% in December.

Elsewhere, the Thomson Reuters/University of Michigan's final reading of its consumer sentiment index improved to 73.8 in January from 71.3 the previous month, beating expectations for a reading of 71.5.

Separately, the Institute of Supply Management said that its manufacturing purchasing managers' index rose to 53.1 last month from 50.2 in December, well above expectations for a rise to 50.6.

The pound, meanwhile, was down against the euro and up against the yen, with EUR/GBP trading up 1.61% at 0.8700 and GBP/JPY up 0.17% at 145.68. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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