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Forex - Pound hits 2-day high against dollar on relief rally

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Forexpros - The pound advanced to a two-day high against the U.S. dollar on Tuesday, tracking the euro's gains on the back of a relief rally sparked by better-than-expected manufacturing data from Germany and China.

GBP/USD hit 1.6558 during early European trade, the pair's highest since August 19; the pair subsequently consolidated at 1.6550, gaining 0.58%.

Cable was likely to find support at 1.6435, Monday's low and a two-day low and resistance at 1.6617, the high of August 19 and a three-and-a-half month high.

Earlier Tuesday, preliminary data showed that German manufacturing activity remained unchanged in July.

German's manufacturing purchasing managers' index remained unchanged 52.0, confounding expectations for a decline to 50.6.

The data came after a preliminary reading of the HSBC's China PMI inched up to 49.8 in August, from a final reading of 49.3 the previous month. There had been some speculation that the reading may turn out to be much weaker.

Meanwhile, the pound was lower against the euro, with EUR/GBP rising 0.20% to hit 0.8745.

Later in the day, the U.K. was to publish industry data on mortgage approvals, while the U.S. was to produce government data on new home sales.

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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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