GBP/USD exchange rate muted ahead of high impact US data
The pound US dollar (GBP/USD) exchange rate is trading in a narrow range this morning as markets await the publication of the latest US ISM manufacturing PMI, scheduled for release this afternoon.
At the time of writing the GBP/USD exchange rate is trading at around $1.3125, virtually unchanged from this morning’s opening rate.
US dollar (USD) to slip following ISM PMI?
The US dollar (USD) is firming against the majority of its peers this morning as it is being bolstered by this morning’s anxious trading conditions.
As investors move away from risker assets and opt for safer currencies this morning, the safe haven ‘greenback’ is managing to climb against its riskier rivals.
Looking ahead to this afternoon, the US will publish its latest ISM manufacturing PMI for August, which could infuse significant volatility in the American currency this afternoon.
Following a lacklustre reading in July, which marked the sharpest contraction within the manufacturing sector in eight months, last month’s data could also undermine the ‘greenback’ this afternoon should the index show confirm another disappointing reading.
Pound (GBP) to be lifted by services PMI?
The pound (GBP) is trending mixed today, firming against its riskier assets however rangebound against the remainder of its peers, following the publication of the British Retail Consortium’s latest retail sales monitor.
The yearly index, released early this morning, printed in line with market expectations and rose from a previous reading of 0.3% up to 0.8%.
However, the pound’s main upside has come from this morning’s risk-off flows, as Sterling continues to firm against its riskier peers.
Looking ahead to tomorrow, GBP exchange rates could firm following the publication of the UK’s finalised services PMI for August.
The all-important index is forecast to rise from 52.5 to 53.3 and is expected to confirm another robust figure in the expansion zone (a score above 50).
Should the data print as expected, GBP exchange rates will likely strengthen during mid-week trade.
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