USD), but Monday’s agenda capped the USD gains. Therefore, the GBP/USD is exchanging hands at 1.2440, 0.04% below its opening price but higher than the day’s low of 1.2368.
GBP/USD slashes early losses on weakening US factory orders and falling Treasury bond yields, limiting US Dollar gains as the UK PMI beats estimates Last week, the US Bureau of Labor Statistics revealed May’s data, showing the creation of more than 300K jobs, thought flashed the Unemployment Rate at 3.7%, sought by the US Federal Reserve , as a sign the economy is cooling and unexpectedly boosted the US Dollar , as the GBP/USD retreated last Thursday¿s gains.
But on Monday, the story is different as Factory Orders in the US weakened, from 0.6% to 0.4% in May, less than estimations. Core Orders, excluding transportation, plummeted 0.2% but improved compared with March’s 0.7% drop. At the same time, the Institute for Supply Management revealed that the Non-Manufacturing PMI fell to 50.9 from April’s 51.9, portraying that the economy is weakening., which tracks the buck’s value vs. a basket of peers. The DXY d down 0.09%, at 103.
On the UK front, the S&P Global Services and Composite PMIs beat estimates, with the Services Index registering a 55.2, exceeding forecasts of 55.1, though less than April’s 55.9. However, price input pressures rose the most in three months, with wages being the main reason. That would keep the Bank of England pressured to deliver further tightening as inflation proves to be stickier than expected.Given the fundamental backdrop, the GBP/USD is neutral to upward biased.
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