Pound Sterling gains against US Dollar at start of Fed policy week
The Pound Sterling (GBP) trades lower against its major currency peers, outperforming North American peers on Monday. The British currency steadies after a sharp rally on Friday, which was prompted by strong United Kingdom (UK) S&P Global Purchasing Managers’ Index (PMI) preliminary data for January and upbeat Retail Sales data for December.
The data released on Friday showed that UK private business activity expanded at a faster pace due to strong manufacturing and services PMI. The UK Composite PMI came in at 53.9 in January, higher than estimates of 51.7 and the prior release of 51.4. Read more…
GBP/USD stays elevated near four-month top, above mid-1.3600s amid a broadly weaker USD
The GBP/USD pair retreats a few pips from its highest level since September 2024, around the 1.3680 region touched during the Asian session, and fills a modest bullish gap opening at the start of a new week. Spot prices currently trade with modest intraday gains, above mid-1.3600s, and seem poised to appreciate further.
US President Donald Trump’s stance to gain control of Greenland and a standoff with European allies raised doubts about the long-standing NATO alliances. This, along with the loss of trust in global leadership, revives the so-called ‘Sell America’ trade and weighs heavily on the US Dollar (USD). The USD Index (DXY), which tracks the Greenback against a basket of currencies, fell to a four-month low on Monday and offers some support to the GBP/USD pair. Read more…