🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Forex - GBP/USD almost unchanged at 2-1/2 week lows despite U.K. PMI

Published 02/07/2015, 09:48
Updated 02/07/2015, 09:52
© Reuters.  Pound holds at 2-1/2 week lows vs. dollar even as U.K. data beats estimates
GBP/USD
-
EUR/GBP
-

Investing.com - The pound was almost unchanged against the U.S. dollar on Thursday, trading at two-and-a-half week lows despite better than expected U.K. construction data, as concerns over the Greek debt crisis continued to dampen market sentiment.

GBP/USD hit 1.5582 during European morning trade, the pair's lowest since June 16; the pair subsequently consolidated at 1.5610.

Cable was likely to find support at 1.5539, the low of June 16 and resistance at 1.5736, Wednesday's high.

Research group Markit reported on Thursday that the U.K. construction purchasing managers' index rose to a four-month high of 58.1 this month from 55.9, beating expectations for a reading of 56.5.

But investors remained cautious after Greek Prime Minister Alexis Tsipras on Wednesday urged Greeks to reject an international bailout deal in a referendum due to be held on July 5, souring hopes of any breakthrough.

Less than 24 hours before, Tsipras had written a conciliatory letter to creditors asking for a new bailout that would accept many of their terms.

On Wednesday Greece became the first developed country to default on the International Monetary Fund after its second bailout program expired late Tuesday. The IMF confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment.

Sterling was lower against the euro, with EUR/GBP rising 0.24% to 0.7095.

Also Thursday, data showed that the number of unemployed people in Spain dropped by 94,700 last month, compared to expectations for a decline of 124,000. In May, the number of unemployed people fell by 118,000.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.