Pound At Multi-day Versus Dollar As U.K. Services Growth Slows
May 05 2016 - 4:13AM
RTTF2
The pound fell to a multi-day low versus the U.S. dollar in
European trading on Thursday, after data showed that the U.K.
service sector activity expanded at the slowest pace in more than
three years in April.
The Chartered Institute of Procurement & Supply/Markit
services Purchasing Managers' Index fell to 52.3 in April from 53.7
in March. A reading above 50 indicates expansion.
The rate of expansion slowed for the third time in the past five
months and reached its lowest since February 2013. It also stayed
below the expected score of 53.5.
European markets are trading higher, amid a rebound in oil and
robust corporate earnings.
That said, the gains were tempered by lackluster data out of
China and the U.K. and the Ascension Day holiday in parts of
Europe.
Investors await all-important U.S. monthly jobs report on Friday
for more clues on the state of the economy.
The economy is expected to create 200,000 jobs in April, while
the unemployment index is expected to edge down to 4.9 percent.
The currency was moderately higher in Asian deals, buoyed by a
rebound in oil.
The pound dropped to a 10-day low of 1.4444 against the dollar,
after having advanced to 1.4529 at 2:30 am ET. If the pound-dollar
pair extends slide, 1.43 is likely seen as the next support
level.
The pound pared gains to 154.88 against the yen, from an early
high of 155.86. The pound is seen finding support around the 152.5
mark.
Although the pound eased from a 2-day high of 0.7883 against the
euro after the data, it changed course in a short while and was
trading higher at 0.7887. The pair finished Wednesday's trading at
0.7921.
The European Central Bank said the economic recovery is expected
to proceed on domestic demand and investment but cautioned that the
recovery is weighed down by the ongoing balance sheet
adjustments.
"Domestic demand, in particular, continues to be supported by
the ECB's monetary policy measures," the bank said in its economic
bulletin.
The pound resumed its early rally against the franc, approaching
a 2-day high of 1.3972. On the upside, it may challenge resistance
around the 1.42 mark. The pair was worth 1.3876 when it ended
yesterday's trading.
Looking ahead, Canada building permits for March and U.S. weekly
jobless claims for the week ended April 30 are slated for release
in the New York session.
At 9:15 am ET, ECB Vice President Vitor Constancio speaks on
"Re-Inventing the Role of Central Banks in Financial Stability", in
Ottawa.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Mar 2024 to Apr 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Apr 2023 to Apr 2024
