The British pound moved higher vis-à-vis the U.S. dollar today as cable tested offers around the US$ 2.0005 level and was supported around the $1.9885 level. Technically, today’s intraday high and low were right around the 61.8% and 50.0% retracements of the move from $2.0395 to $1.9360, respectively. Data released in the U.K. today saw the June PMI manufacturing survey fall to 45.8 from 49.5 in May, further evidence of a contraction in the sector. Traders await Thursday’s PMI services data to see if there is further evidence of deterioration. Sterling also came off when it was reported that Nationwide June house prices were off 0.9% m/m and 6.3% y/y. Cable bids are cited around the US$ 1.9360/ 1.9100 levels. The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ₤0.7915 level and was supported around the ₤0.7870 level.
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