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Forex - EUR/GBP jumps to 13-month high after weak U.K. PMI

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Forex Pros - The euro jumped to a 13-month high against the pound on Tuesday, after a report showing that manufacturing activity in the U.K. declined more-than-expected in April to hit a seven-month low.

EUR/GBP hit 0.8980 during European morning trade, the pair's highest since March 30, 2010; the pair subsequently consolidated at 0.8969, jumping 0.74%.

The pair was likely to find support at 0.8854, Monday's low and resistance at 0.9066, the high of March 17, 2010.

The Markit/CIPS manufacturing purchasing managers' index fell to 54.6 in April; it's lowest since September, from a downwardly revised 56.7 in March and well below the expected reading of 56.9.

A reading above 50 indicates that activity increased, while a reading below 50 indicates that it decreased.

Rob Dobson, senior economist at Markit said, "The outlook has deteriorated sharply, with new orders growth having collapsed from a booming pace at the start of the year to only register a weak influx of new business in April".

The pound was also sharply lower against the U.S. dollar, with GBP/USD tumbling 0.91% to hit 1.6499.

Later Tuesday, the U.S. was to release government data on factory orders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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