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Forex - GBP/USD pushes lower as U.K. data continues to weigh

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Investing.com - The pound pushed lower against the U.S. dollar on Tuesday, as weak U.K. manufacturing data continued to fuel fears over the outlook for growth, boosting the likelihood of more easing by the Bank of England.

GBP/USD hit 1.5121 during U.S. morning trade, the pair's lowest since March 28; the pair subsequently consolidated at 1.5124, declining 0.71%.

Cable was likely to find support at 1.5110, the low of March 28 and resistance at 1.5257, the session high.

The Markit U.K. manufacturing purchasing managers' index rose to 48.3 in March from 47.9 in February, but came in below expectations for a reading of 48.5.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

The weak data added to fears over the risk of a triple-dip recession and fuelled expectations that the BoE could restart its asset purchase program as soon as this week.

In the U.S., official data showed that factory orders rose 3.0% in February, slightly above expectations for an increase of 2.9%.

Sterling was also lower against against the euro, with EUR/GBP climbing 0.47% to 0.8475.

Sentiment on the single currency remained fragile after weak data out of the euro zone fuelled doubts over the strength of the region's recovery in the first quarter.

Official data showed that the euro zone unemployment rate rose to an all-time high of 12% in February compared with an original estimate of 11.9% for January, which was revised up to 12%.

A separate report showed that the euro zone's manufacturing PMI ticked up to 46.8 in March, from a final reading of 46.6 the previous month, still substantially below the 50 mark that separates growth from contraction.

Concerns over the potential implications of a bailout for Cyprus and worries over ongoing political uncertainty in Italy also weighed.

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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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