Pound Falls Then Rallies on Weak UK Services PMI and BoE Rumours

The  Sterling pound today traded lower against the  US dollar earlier in  the  session as  investors stayed away from the  pound amid Brexit uncertainty and  risk-off market sentiment. However, the  GBP/USD currency pair later recovered despite the  release of  weak UK PMI data by  Markit Economics amid rumours that the  Bank of  England would cut rates soon.
The  GBP/USD currency pair today fell to  a  low of  1.2770 in  the  early London session before recovering and  rallying to  a  high of  1.2846 and  was trading near this high at  the  time of  writing.
The  currency pair headed lower at  the  start of  today’s session as  the  US dollar found a  floor after yesterday’s selloff, which was triggered by  the  emergency Fed rate cut. The  pair was under intense selling pressure as  the  risk-off sentiment permeated the  markets as  coronavirus cases in  the  UK rose. The  release of  the  weak Markit/CIPS UK Services PMI, which came in  at  53.2 missing consensus estimates set at  53.3, drove the  pair lower. However, the  pair rallied higher later as  buyers stepped in  despite rumours that the  Bank of  England rumours.
The  pair had a  muted reaction to  the  upbeat US ADP employment change report released in  the  early American session. The  pair fell slightly after the  release of  the  US ISM non-manufacturing PMI for  February, which came in  at  57.3 versus the  expected 54.9.
The  currency pair’s future performance is likely to  be affected by  Mark Carney’s speech tomorrow and  geopolitical headlines.
The  GBP/USD currency pair was trading at  1.2845 as  at  18:03 GMT having risen from a  low of  1.2770. The  GBP/JPY currency pair was trading at  137.99 having rallied from a  low of  137.21.

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