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1 Sep 2015
GBP/USD defends 1.5300, off lows after US data
FXStreet (Córdoba) - GBP/USD printed a fresh 3-month low at 1.5298 but bounced to the upside and recovered ground after the release of US economic data. The pair moved off session lows and approached 1.5350.
Currently it trades at 1.5330/35, down more than 50 pips from the level it closed yesterday and still holds a bearish tone but so far it has been able to defend the 1.5300 area. The mentioned level has become a key short-term support.
Greenback lost strength during the last hours versus the pound as the US dollar index failed to make new highs so far during the American session and while US equities attempt to stabilize.
Weak PMI: US and UK
The pound is the worst performer so far among the most traded European currencies weakened by the United Kingdom Manufacturing PMI index that dropped from 51.9 to 51.5 in August; analysts expected an increase to 52.0.
In the US manufacturing data also surprised to the downside. The ISM index fell to 51.1 in August, the lowest reading in two years while construction spending rose 0.7% in July.
Tomorrow in the UK construction data will be released while in the US, traders will watch closely the numbers from the ADP employment report, ahead of Friday’s official numbers with the Non-farm payrolls.
Currently it trades at 1.5330/35, down more than 50 pips from the level it closed yesterday and still holds a bearish tone but so far it has been able to defend the 1.5300 area. The mentioned level has become a key short-term support.
Greenback lost strength during the last hours versus the pound as the US dollar index failed to make new highs so far during the American session and while US equities attempt to stabilize.
Weak PMI: US and UK
The pound is the worst performer so far among the most traded European currencies weakened by the United Kingdom Manufacturing PMI index that dropped from 51.9 to 51.5 in August; analysts expected an increase to 52.0.
In the US manufacturing data also surprised to the downside. The ISM index fell to 51.1 in August, the lowest reading in two years while construction spending rose 0.7% in July.
Tomorrow in the UK construction data will be released while in the US, traders will watch closely the numbers from the ADP employment report, ahead of Friday’s official numbers with the Non-farm payrolls.