The Pound Sterling to US Dollar (GBP/USD) exchange rate recovered
from earlier losses to push higher on Monday as data out of the USA came
in below economist forecasts.
The PMI climbed to a reading of 53.0 in January, up from the 52.5 figure recorded in the preceding month and beat economist expectations for a figure of 52.6.
Gains for Sterling however were muted as traders saw the cut in factory prices as a sign that inflation will continue to remain weak and lead to Bank of England (BoE) policy makers to leave interest rates unchanged at the record low level of 0.5% at Thursday’s policy meeting.
US Data Disappoints
The US Dollar softened as the session progressed due to economic data disappointing the markets. According to the Institute Supply Management, manufacturing activity in the world’s largest economy expanded at its slowest pace in 11 months in January, raising concerns over that economic strength is faltering.
Read more Click here / www.trade4x.net
GBP/USD exchange rate hit a session low of 1.500
Earlier in the session, the Pound found some support after data released by market research firm Markit showed that it’s UK manufacturing Purchasing Managers Index (PMI) rose more than forecast in January.The PMI climbed to a reading of 53.0 in January, up from the 52.5 figure recorded in the preceding month and beat economist expectations for a figure of 52.6.
Gains for Sterling however were muted as traders saw the cut in factory prices as a sign that inflation will continue to remain weak and lead to Bank of England (BoE) policy makers to leave interest rates unchanged at the record low level of 0.5% at Thursday’s policy meeting.
US Data Disappoints
The US Dollar softened as the session progressed due to economic data disappointing the markets. According to the Institute Supply Management, manufacturing activity in the world’s largest economy expanded at its slowest pace in 11 months in January, raising concerns over that economic strength is faltering.
Read more Click here / www.trade4x.net
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