Pound Extends Slide Against Most Majors
The pound extended its previous session’s decline against the currencies of the U.S., Japan and Switzerland on Wednesday morning in New York as traders switched holdings from risk-yielding currencies to safe-haven assets after a report showed that the U.S. service sector grew at a slower pace than economists had anticipated.
The Institute of Supply Management said its non-manufacturing index fell to 53.3 in June from 54.6 in May, although a reading above 50 indicates continued growth in the service sector. Economists had been expecting the index to edge down to a reading of 54.0.
The pound is presently trading at an 8-day low of 1.5951 against the US dollar and a 6-day low of 129.0 against the yen and 1.3365 against the Swiss franc. On the downside, the British currency may test support levels at 1.3270 against the Swiss franc, 1.5910 versus the greenback and 128.40 versus the yen.
