RTTN:Pound Weakens After U.K. Manufacturing PMI Falls To 8-month Low
The pound slipped against other major currencies in European deals on Tuesday after U.K. manufacturing sector growth slowed unexpectedly to an eight-month low in March.
The survey data from Markit Economics showed today that the seasonally adjusted Markit/Chartered Institute of Purchasing & Supply Purchasing Manager's Index fell to 55.3 in March from 56.2 in February, signaling a further cooling of growth from the peaks scaled towards the end of last year.
The score was forecast to rise to 56.7 in March. Nonetheless, the above neutral 50 reading indicates expansion in the sector.
Meanwhile, European stocks rose on better-than-expected China official manufacturing PMI and comments from Federal Reserve Chair Janet Yellen that the U.S. economy still needs "extraordinary" monetary support "for some time" to ensure more sustained recovery.
The pound reached as low as 1.6645 against the greenback, down from yesterday's closing quote of 1.6662. Further weakness may take the pound to a support around the 1.65 mark.
The pound reversed from an early high of 1.4750 against the franc, falling to 1.4701. If the pound extends decline, it may eye support around the 1.46 zone.
The pound fell to 0.8292 against the euro, down from high of 0.8261 hit around 2:50 am ET. On the downside, the pound may test support around the 0.835 mark.
The Eurozone jobless rate remained unchanged in February, data from Eurostat showed today.
The unemployment rate held steady at 11.9 percent after the January figure was revised down from 12 percent. Economists had forecast the rate to remain unchanged at January's originally estimated 12 percent.
The pound showed a mild pullback against the yen with pair trading around 172.04, down from an early 3-week high of 172.32.
An index monitoring business sentiment in Japan showed mild upside in the first quarter of 2014, the Bank of Japan revealed today in its quarterly Tankan business survey - although the outlook for the second quarter is somewhat less optimistic.
The large manufacturers index came in with a six-year high score of 17, missing forecasts for 18 but up from 16 in the fourth quarter of last year.
Looking ahead, U.S. ISM manufacturing index for March and construction spending for February are set for release in the New York session.
