Shutterstock photo
Markets

Forex - GBP/USD remains near 1-month lows in cautious trade

Shutterstock photo

Shutterstock photo

Investing.com - The pound continued to trade near one-month lows against the U.S. dollar on Tuesday, despite positive U.K. data as markets remained jittery ahead of policy meetings by the European Central Bank and the Bank of England later in the week.

GBP/USD hit 1.5137 during U.S. morning trade, the pair's lowest since May 30; the pair subsequently consolidated at 1.5165, declining 0.33%.

Cable was likely to find support at 1.5110, the low of May 30 and resistance at 1.5238, the session high.

Earlier Tuesday, data showed that construction activity in the U.K. expanded at the fastest pace since May 2012 in June.

Markit said the U.K. construction purchasing managers' index rose to a seasonally adjusted 51.0 in June from 50.8 in May.

Economists had expected the index to improve to 51.1 last month.

Senior Markit economist Tim Moore said the improvement in overall construction output boosted the outlook for second quarter growth and lowered the chances for additional easing measures by the BoE at its monthly policy meeting on Thursday.

Data on Monday showed that manufacturing activity in the U.K. expanded at the fastest pace in more than two years in June.

In the U.S., the Census Bureau said factory orders rose by a seasonally adjusted 2.1% in May, compared to expectations for an increase of 2%.

Factory orders in April rose by 1.3%, upwardly revised from a previously reported gain of 1%.

Investors were looking ahead to Friday's U.S. nonfarm payrolls data, for further clues on when the Federal Reserve may decide to unwind its USD85 billion-a-month stimulus program.

Sterling was steady against the euro with EUR/GBP inching 0.02% higher, to hit 0.8585.

The ECB was expected to reiterate that an exit from loose monetary policy remains distant at its monthly meeting on Thursday, despite data on Monday indicating that the slump in the euro zone's manufacturing sector is easing.

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