Forex - GBP/USD holds gains, U.K. data supports
Published Jun 05, 2013 10:54AM ET
GBP/USD hit 1.5397 during U.S. morning trade, the pair's highest since May 10; the pair subsequently consolidated at 1.5376, advancing 0.42%.
Cable was likely to find support at 1.5274, Tuesday's low and resistance at 1.5458, the high of May 10.
The Markit U.K. services purchasing managers’ index rose to 54.9 in May from 52.9 in April, outstripping expectations for a reading of 53.0.
The report said new business increased at the sharpest pace for over three years in May, as better weather and improved market conditions supported growth.
The data reinforced expectations that the Bank of England would keep monetary policy unchanged at its monthly meeting on Thursday after better-than-forecast U.K. data on manufacturing and construction earlier in the week.
In the U.S., the Institute of Supply Management said its U.S. non-manufacturing purchasing manager's index rose to 53.7 in May from a reading of 53.1 in April.
Analysts had expected the index to tick up to 53.5.
The data came after Payroll processor ADP said U.S. non-farm private employment rose by a seasonally adjusted 135,000 in May, below expectations for an increase of 165,000.
The previous month’s figure was revised down to a gain of 113,000 from a previously reported increase of 119,000.
The data fuelled uncertainty over whether the Federal Reserve will scale back its asset purchase program this year.
In a separate report, the Commerce Department said U.S. factory orders rose 1% in April, undershooting expectations for an increase of 1.6%.
Sterling was higher against the euro with EUR/GBP shedding 0.40%, to hit 0.8505.
The euro came under pressure after data showed that the final euro zone service PMI fell to 47.2 in May, down from a preliminary reading of 47.5 but slightly higher than April’s reading of 47.0.
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Written By: Investing.com
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