Forexpros – The pound trimmed gains against the U.S. dollar on Monday, after better-than-expected U.S. economic data further dampened expectations for additional easing measures by the Federal Reserve.
GBP/USD pulled back from 1.5874, the daily high, to hit 1.5853 during U.S. morning trade, still up 0.12%.
Cable was likely to find support at 1.5772, the low of February 21 and resistance at 1.5906, the high of February 28.
The Institute of Supply Management said its non-manufacturing purchasing managers’ index climbed to 57.3 in February from a reading of 56.8 the previous month. Analysts had expected the index to decline to 56.1.
A separate report showed that U.S. factory orders fell, albeit at a slower than forecast pace in January, declining by a seasonally adjusted 1.0%, compared to expectations for a 1.3% slide.
Meanwhile, sterling remained under pressure ahead of the March 8 deadline for Greece’s private creditors to join the agreement under which they will exchange their existing Greek holdings for new government bonds in a debt swap deal.
A failure to agree on the debt restructuring deal would put the country back on the brink of a sovereign debt default.
Sentiment also weakened earlier after Chinese Premier Wen Jiabao cut the nation’s economic growth target to 7.5% for 2012 earlier, down from a previous target of 8%, in order to allow the pace of economic expansion room to moderate if necessary.
Elsewhere, the pound was up against the euro with EUR/GBP inching down 0.05, to hit 0.8332.
Also Monday, data showed that the U.K. service sector expanded in February, albeit at a slower than expected pace, fuelling hopes that the economy will avoid slipping into a recession in the first quarter.
The Markit/CIPS Services Purchasing Managers Index declined by 2.2 points to 53.8, from a reading of 56.0 in January. Analysts had expected a reading of 55.0 in February.
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