On Monday British pound advanced to more than two week highs versus the US dollar after official report said UK manufacturing sector registered higher activity.
GBP/USD pair reached 1.5291 during European trade, session high for the moment and highest since May 16th, after which consolidation followed at 1.5270. Pound was still up by 0.50% for the day. Support was expected at 1.5129, the session low, while resistance was to be met at May 14th highest value, 1.5330.
Earlier it was reported that Manufacturing CIPS (The Chartered Institute of Purchasing and Supply) indicator in United Kingdom rose to 51.3 during May, above the projected value of 50.1, while the reading showed 49.8 during the previous month. This was the fastest pace of monthly increase for the last 14 months. Data implied that British manufacturing sector has moved to territory, pointing expansion, exceeding the 50.0 level. Some experts suggested that, given these results, the probability Bank of England to introduce additional stimulus at its Thursday meeting may be reduced.
British pound reached session high against the euro as well, with EUR/GBP dipping to 0.8525. Positive signal was submitted from the single currency zone, as PMI data from Spain, Italy, France, Germany and the Euro zone as a whole showed improvement in May in comparison with the previous month.
Markets await the PMI and the Institute for Supply Management (ISM) manufacturing data from United States later today.
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