Shutterstock photo
Markets

Forex - GBP/USD edges higher before U.S. jobs report

Shutterstock photo

Shutterstock photo

Investing.com - The pound edged higher against the dollar on Wednesday ahead of U.S. data on private sector employment but gains were limited after data showed that the U.K. construction sector remained in contraction territory for the fifth successive month in March.

GBP/USD hit 1.5132 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5120, edging up 0.11%.

Cable was likely to find support at 1.5026, the low of March 20 and resistance at 1.5199, the high of March 28.

Sterling briefly touched session lows after data showed that the U.K. construction purchasing managers' index ticked up to 47.2 from 46.8 in February, still below the 50 mark that separates growth from contraction and undershooting forecasts for a reading of 47.5.

The report said that unusually bad weather and sluggish demand contributed to lower construction output in March.

The data added to fears over the risk of a triple dip recession after data on Tuesday showed that the U.K. manufacturing sector contracted last month.

The U.K. was to release data on service sector activity on Thursday, ahead of the Bank of England's rate decision.

Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8484.

The U.S. was to release the ADP nonfarm payrolls report later Wednesday, while the Institute of Supply Management was release a report on U.S. service sector activity.

Investing.com - Investing.com 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.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

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.

Other Topics

ForEx