Shutterstock photo
Markets

Forex - GBP/USD flat on U.K. data, ECB concerns

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The pound traded flat against the dollar on Monday, buoyed by upbeat U.K. manufacturing data though capped by expectations the European Central Bank will loosen policy this week, which fueled safe-haven demand for the dollar.

In U.S. trading on Monday, GBP/USD was trading unchanged at 1.6752, up from a session low of 1.6726 and off a high of 1.6768.

Cable was likely to find support at 1.6693, Thursday's low, and resistance at 1.6778, Friday's high.

Markit Economics reported earlier that the U.K. manufacturing PMI ticked down to 57.0 in June from 57.3 the previous month, in line with expectations.

A separate report showed that net lending to individuals in the U.K. rose by £2.4 billion in April, below expectations for a £2.7 billion increase, after a downwardly revised £2.8 billion gain in March, and Monday's data gave the pound support.

Still, expectations for the European Central Bank to loosen policy due to soft inflation rates sent investors ditching the euro in exchange for the dollar.

Earlier Monday, official data showed that Germany's consumer price index accelerated at an annualized rate of 0.9% last month, down from 1.3% in April. Analysts had expected German consumer prices to rise by 1.1% in May.

Separately, Markit research group said that Spain's manufacturing PMI rose to 52.9 this month, from 52.7 in May, in line with expectations, while Italy's manufacturing PMI slipped to 53.2 in June from 54.0 a month earlier, missing expectations for a 53.7 reading.

Meanwhile in the U.S., the Institute of Supply Management said its manufacturing purchasing managers' index ticked down to 53.2 in May from 54.9 in April, confounding expectations for a rise to 55.5.

Still, markets shrugged off the news, as any figure over 50 signifies expansion.

Elsewhere, sterling was up against the euro, with EUR/GBP down 0.21% at 0.8120, and up against the yen, with GBP/JPY up 0.51% at 171.41.

On Tuesday, the U.K. is to publish data on construction-sector activity, as well as private-sector data on house price inflation.

The U.S. is to produce data on factory orders.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

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