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Forex - Pound trims losses vs. dollar after soft U.S. ISM report

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Forex Pros -The pound trimmed losses against the U.S. dollar on Monday, after industry data showed that the pace of growth in the U.S. manufacturing sector slowed in April for a second straight month.

GBP/USD clawed back up from 1.6644, the daily low, to hit 1.6693 during U.S. morning trade, dipping 0.09%.

Cable was likely to find support at 1.6623, Friday's low and short-term resistance at 1.6745, last Thursday's high and a 17-month high.

The U.S. Institute for Supply Management said its index of national factory activity fell to 60.4 in April from 61.2 the month before. Analysts had expected the index to decline to 59.7.

A reading above 50 indicates that activity increased, while a reading below 50 indicates that it decreased.

Earlier in the day the dollar gained broadly, as reports that that Al Qaeda leader Osama Bin Laden had been killed by U.S. Special Forces in Pakistan fuelled a perception that that his death could make the U.S. less subject to terrorist attacks, but some analysts remained skeptical of whether it would reduce the security risks facing the country.

The pound was also lower against the euro, with EUR/GBP rising 0.59% to hit 0.8912.

Also Monday, London-based property researcher Hometrack said U.K. house prices stopped falling in April for the first time in 10 months as demand for homes picked up.

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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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