Investing.com - The pound edged higher against the U.S. dollar on Thursday, even after data showed that manufacturing activity in the U.K. expanded at the slowest rate in three months in September, as investors awaited the release of U.S. economic reports later in the day.
GBP/USD hit 1.5151 during European morning trade, the session high; the pair subsequently consolidated at 1.5141, adding 0.13%.
Cable was likely to find support at 1.5104, Wednesday's low and a nearly five-month low and resistance at 1.5213, Wednesday's high.
Research group Markit said its U.K. manufacturing purchasing managers’ index eased to 51.5 in September from a revised reading of 51.6 in August. Economists had expected the index to tick up to 51.3.
Meanwhile, demand for the dollar continued to be underpinned after data on Wednesday showed that the U.S. private sector added 200,000 jobs last month.
Investors were turning their attention to Friday’s U.S. jobs report for September, which could help to provide clarity on the likelihood of a near-term interest rate hike by the Federal Reserve.
Separately, markets were jittery after two surveys of China’s manufacturing sector earlier showed that factory activity continued to slow in September, adding to fears over the outlook for the world’s second largest economy.
China’s Caixin manufacturing index fell to 47.2 in September from 47.3 in August, the fastest contraction since March 2009.
The official manufacturing index ticked up to 49.8, up from 49.7 in August, but remained in contraction territory.
Sterling was higher against the euro, with EUR/GBP shedding 0.31% to 0.7365.