Forex – GBP/USD trims losses after U.K. PMI but still under pressure
Forex – GBP/USD…The pound trimmed losses against the U.S. dollar on Thursday, after the release of better than expected U.K. manufacturing activity data, although mounting political uncertainty in Britain continued to weigh.
GBP/USD eased off 1.2841, the session low, to hit 1.2876 during European morning trade, still down 0.10%.
Cable was likely to find support at 1.2770, Wednesday’s low and a one-month low and resistance at 1.2949, the high of May 26.
Research group Markit said that its U.K. manufacturing purchasing managers’ index fell to56.7 last month from a reading of 57.3 in April. Analysts had expected the PMI to decline to 56.5.
But sentiment on the pound remained vulnerable after the latest YouGov poll released on Wednesday showed that Theresa May’s Conservative Party is only 3 percentage points in front of the opposition Labour Party ahead of the June 8 election.
Meanwhile, the greenback regained some ground on Thursday but gains were expected to remain limited amid ongoing fears investigations into President Donald Trump’s ties with Russia could hamper his administration’s progress on promised stimulus measures.
The Trump administration is under investigation by the Federal Bureau of Investigation and several congressional panels over alleged Russian meddling in the 2016 presidential election and potential collusion with the Trump campaign.
Sterling was steady against the euro, with EUR/GBP at 0.8717.