GBP/USD hit 1.6170 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6168, edging up 0.23%.
Cable was likely to find support at 1.6077, the low of September 13 and resistance at 1.6209, the high of September 26.
Sterling remained under pressure after a report showed that U.K. construction sector activity improved modestly in September, but remained in contraction territory for the second consecutive month.
The Markit/CIPS construction purchasing managers' index ticked up to 49.5 last month from a reading of 49.0 in August, but came in just below expectations for a reading of 49.8.
The data came after a report by mortgage lender Nationwide said house prices in the U.K. unexpectedly fell by 0.4% in September and are now 1.4% lower than in the same month last year.
Separately, market sentiment remained fragile after Reuters reported Monday that Spain may be preparing to request a bailout as early as next weekend, but Germany is urging Madrid to wait.
Earlier Tuesday, Spanish media outlets reported that Spain’s Prime Minister Mariano Rajoy told members of his political party that he will not request external financial assistance this weekend.
Elsewhere, the pound was lower against the euro with EUR/GBP rising 0.27%, to hit 0.8011.
On Monday, data showed that manufacturing activity in the U.K. fell deeper into contraction territory in September, increasing the likelihood that the Bank of England may extend its program of economic stimulus measures.
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