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Forex - GBP/USD lower ahead of U.K. PMI, BoE statement

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Investing.com - The pound was lower against the U.S. dollar on Thursday, after the Federal Reserve gave no indication on when it will begin to taper its stimulus program, while markets eyed the release of U.K. manufacturing data and the Bank of England's policy statement later in the day.

GBP/USD hit 1.5127 during European morning trade, the session low; the pair subsequently consolidated at 1.5234, sliding 0.30%.

Cable was likely to find support at 1.5079, the low of July 19 and resistance at 1.5254, Wednesday's high.

At the end of its two-day policy meeting on Wednesday, the Fed said it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".

Market players were looking ahead to highly-anticipated data on U.S. nonfarm payrolls due on Friday for indications of how the recovery in the U.S. labor market is progressing.

Sterling was higher against the euro with EUR/GBP edging down 0.21%, to hit 0.8727.

Also Thursday, Markit research group said Spain's manufacturing purchasing managers' index fell to 49.8 in July, from a reading of 50.0 the previous month, swinging back into contraction territory.

Analysts had expected the index to 50.9 last month.

Later in the day, the U.K. was to produce a report on manufacturing activity, while the Bank of England was to publish its monthly policy statement.

The U.S. was to release official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.

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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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