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Forex - GBP/USD eases off 2-day high after U.S. ISM declines

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Forexpros - The pound eased back from a two-day high against the U.S. dollar on Wednesday, after a report showed activity in the U.S. services sector declined unexpectedly last month, falling to the lowest level since February 2010.

GBP/USD pulled back from 1.6409, the pair's highest since Monday, to hit 1.6379 during early U.S. trade, still up 0.50% on the day.

Cable was likely to find support at 1.6223, Tuesday's low and resistance at 1.6474, Tuesday's high and a two-month high.

The Institute for Supply Management said its services index fell to 52.7 last month from 53.3 in June. Analysts had forecast a reading of 53.6.

Elsewhere, payroll processing firm ADP said private sector employment rose by a seasonally adjusted 114,000 in July, above expectations for an increase of 100,000.

The previous month's figure was revised down to a gain of 145,000 from a previously reported 157,000.

The pound tracked the euro higher earlier, after Switzerland's central bank implemented measures to curb the franc's record gains against the euro and the U.S. dollar, lifting the single currency across the board.

The Swiss National Bank narrowed its three-month Libor rate to 0.25% from 0.75%, saying the currency was "massively overvalued."

Meanwhile, the pound was almost unchanged against the euro, with EUR/GBP inching up 0.02% to hit 0.8717.

Also Wednesday, data showed that the U.K. services sector grew at its fastest pace in four months in July.

The Markit/CIPS services purchasing managers' index rose to 55.4 in July from 53.9 in June, confounding expectations for a slowdown to 53.2.

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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.

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