Forex - GBP/USD rises on upbeat U.K. manufacturing data

Posted on at - The pound rose against the U.S. dollar on Monday, pulling away from a 14-month trough after the release of upbeat U.K. manufacturing data, although demand for the greenback continued to be broadly supported.

GBP/USD hit 1.5690 during European morning trade, the session high; the pair subsequently consolidated at 1.5674, adding 0.22%.

Cable was likely to find support at 1.5504 and resistance at 1.5743, Friday's high.

The pound found support after market research group Markit said that its U.K. manufacturing purchasing managers' index rose to a four-month high of 53.5 last month from a reading of 53.2 in October.

Analysts had expected the index to inch down to 53.1 in November.

A separate report showed that U.K. net lending to individuals rose by £2.6 billion in October, less than the expected £2.8 billion increase, after a £2.7 billion rise in September.

Meanwhile, demand for the dollar remained broadly supported as U.S. oil prices fell more than 2% on Monday, extending a broad based selloff in the wake of last Thursday’s decision by the Organization of the Petroleum Exporting Countries not to cut output quotas.

Sterling was also higher against the euro, with EUR/GBP slipping 0.11% to 0.7951.

Earlier Monday, Markit said that its German manufacturing PMI hit a 17-month high of 49.5 in November, down from a preliminary reading of 50.0. The index stood at 51.4 in October.

Markit also reported that its euro zone manufacturing PMI ticked down to 50.1 last month from 50.4 in October. Analysts had expected the index to remain unchanged last month.

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