Investing.com - The pound rose to a one-month high against the U.S. dollar on Monday, boosted by data showing that activity in the U.K. service sector returned to expansionary territory in August, while the greenback remained broadly under pressure.
GBP/USD 1.3367 during European morning trade, the pair’s highest since August 3; the pair subsequently consolidated at 1.3367, climbing 0.54%.
Cable was likely to find support at 1.3123, the low from September 1 and resistance at 1.3480, the high of July 14.
Research group Markit said its U.K. services purchasing managers’ index rose to 52.9 last month from a reading of 47.4 in July. Analysts had expected the index to rise to 50.0.
The upbeat data added to current optimism over the strength of the economy and Britain’s ability to overcome any post-Brexit hurdles.
Meanwhile, the greenback remained under pressure after data on Friday showed that the U.S. economy added 151,000 jobs in August, disappointing expectations for an increase of 180,000.
The U.S. unemployment rate remained unchanged at 4.9% this month, confounding expectations for a downtick to 4.8%.
The report also showed that average hourly earnings rose 0.1% in August, below expectations for a 0.2% increase.
The disappointing data dampened expectations for a near-term rate hike, as Fed officials recently indicated that the pace of interest rate increases will be data-dependent.
Sterling was also higher against the euro, with EUR/GBP dropping 0.50% to 0.8358.