Forex - GBP/USD extends losses after weak U.K. PMI data
Investing.com
Published Oct 04, 2011 05:08AM ET
GBP/USD hit 1.5378 during European morning trade, the pair’s lowest since September 23; the pair subsequently consolidated at 1.5401, sliding 0.19%.
Cable was likely to find support at 1.5330, the low of September 23 and a one-year low and resistance at 1.5491, the high of the same day.
The Markit/CIPS construction purchasing managers’ index dropped to 50.1 in last month from 52.6 in August, its lowest reading since a contraction in December 2010, as demand in the housing market remained sluggish.
Analysts had expected the index to decline to 51.6 in September.
The soft data added to expectations that the Bank of England may resort to fresh monetary easing measures as early as this week, to shore up the flagging U.K. economy.
Meanwhile, concerns over the potential impact on the global banking system of a default by Greece continued, supporting safe haven demand.
The pound was also lower against the euro, with EUR/GBP rising 0.25% to hit 0.8560.
Later in the day, the U.S. was to release official data on factory orders, while Federal Reserve Chairman Ben Bernanke was to testify to the joint economics committee in Washington.
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Written By: Investing.com
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