Pound Slides Amid Contraction In U.K. Business Activity
(RTTNews) - The pound dropped against its major counterparts in the European session on Tuesday, as the nation's business activity contracted to the lowest level since January.
Final survey results from S&P Global and the Chartered Institute of Procurement & Supply showed that the U.K. composite PMI fell to 48.6 in August from 50.8 in July. The flash score was 47.9.
The services PMI dropped to 49.5 from 51.5 in the previous month. The flash reading was 48.7.
Disappointing China data fueled global growth concerns and further weighed on the currency.
China Caixin services PMI slipped more-than-expected to 51.8 from 54.1 in July. The expected score was 53.6.
The pound touched 1.2527 against the greenback, setting a 2-1/2-month low. The pound is seen finding support around the 1.23 mark.
The pound declined to 184.06 against the yen, from an early 5-day high of 185.30. The pound is likely to face support around the 180.00 region, if it falls again.
Against the euro and the franc, the pound fell to a 5-day low of 0.8576 and a 6-day low of 1.1123, respectively. The pound may locate support 0.88 against the euro and 1.10 against the franc.
U.S. factory orders for July are slated for release in the New York session.
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