Forex – GBP/USD little changed after upbeat U.K. PMI

© Reuters. Pound holds steady vs. greenback as caution dominates – The pound was little changed against the U.S. dollar on Tuesday, after the release of upbeat U.K. manufacturing activity data, as investors remained cautious ahead of the Federal Reserve’s policy meeting this week.

hit 1.2944 during European morning trade, the session high; the pair subsequently consolidated at 1.2887.

Cable was likely to find support at 1.2834, the low of April 27 and resistance at 1.2970, the high of April 28 and a seven-month peak.

Research group Markit said its rose to 57.3 in April from 54.2 the previous month. It was the highest reading since July 2014.

Analysts had expected the index to hit 54.0 last month.

Meanwhile, the dollar remained under pressure after the Institute of Supply Management said on Monday that its fell to 54.8 in April from 57.2 the previous month, compared to expectations for a downtick to 56.5.

A separate report showed that was flat in March, confounding expectations for a 0.2% rise and after a 0.1% gain.

However, that economic growth of 3% is achievable in the next two years as the Trump administration is planning to dramatically cut taxes.

Market participants were also eyeing the Federal Reserve’s two-day policy meeting this week. While the central bank is widely expected to hold interest rates, investors were eyeing hints on the pace of future rate hikes.

Sterling was fractionally lower against the euro, with easing up 0.09% to 0.8468.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.