GBP/USD retreated from the two-week high at 1.2774

GBP/USD extends its losses following the recent pullback, trades around 1.2710

GBP/USD experiences a downward trend, following the pullback from a recent two-week high at 1.2774 on Wednesday. During the Asian session on Thursday, the GBP/USD pair trades lower near 1.2710. The Pound Sterling (GBP) initially received support following positive Purchasing Managers Index (PMI) data from the United Kingdom (UK). However, this upward momentum could not be sustained after the release of upbeat PMI data from the United States (US).

The preliminary S&P Global/CIPS Services Purchasing Managers’ Index (PMI) for January in the United Kingdom demonstrated growth, registering a reading of 53.8 compared to the previous figure of 53.4. The Manufacturing PMI also showed improvement, increasing to 47.3 from the earlier reading of 46.2. Simultaneously, the Composite PMI, which combines both services and manufacturing sectors, appreciated, reaching a figure of 52.5 compared to the previous reading of 52.1. Read more…

GBP/USD posts modest gains above 1.2700, investors await US GDP data

The GBP/USD pair posts modest gains during the early Asian trading hours on Thursday. The major pair reclaims above the 1.2700 mark on the back of the risk-on sentiment. Nonetheless, the release of the preliminary US GDP growth numbers for the fourth quarter (Q4) on Thursday might trigger volatility in the market. At press time, GBP/USD is trading at 1.2717, up 0.01% on the day.

On Wednesday, the UK Flash Purchasing Managers Index (PMI) for January came in stronger than expected, with Manufacturing PMI growing from 46.2 to 47.3 while the Services PMI climbed from 53.4 to 53.8. Finally, the S&P Global Composite PMI rose from 52.1 to 52.5, the highest in seven months. Read more…