Connect with us

Economics

Pound Rallies on Upbeat UK Manufacturing PMI and COVID-19 Success

The Sterling pound rallied against the dollar buoyed by the UK’s COVID-19 vaccination programme’s success that has seen infection and death rates decline. The GBP/USD currency pair’s rally was also fueled by the upbeat British manufacturing…

Published

on

This article was originally published by Forex News

The Sterling pound rallied against the dollar buoyed by the UK’s COVID-19 vaccination programme’s success that has seen infection and death rates decline. The GBP/USD currency pair’s rally was also fueled by the upbeat British manufacturing data released earlier today, showing the UK’s economic recovery.

The GBP/USD currency pair rallied from a low of 1.3746 in the early London market to a high of 1.3836 in the American session and was trading near these highs at the time of writing.

The currency pair’s initial decline was driven by negative investor sentiment as the dollar edged higher. However, the pair reversed course and headed higher during the early London session amid some dip-buying as US coronavirus cases surge. The final Markit/CIPS UK Manufacturing PMI release saw the figure upgraded to 58.9 versus analysts estimates set at 57.9 also boosted the pair. Expectations that the UK will not announce new lockdown measures also lifted the pound as other countries announce new restrictions to tame rising coronavirus cases.

The dollar’s overall weakness, as tracked by the US Dollar Index, also supported the cable’s rally. Falling US 10-year Treasury yields also made the pound more attractive.

The release of the disappointing US initial jobless claims report also favored the cable. The upbeat ISM US Manufacturing PMI, which came in at 64.7, beating analysts’ estimates of 61.3, had a muted impact on the pair.

The currency pair’s future performance is likely to be affected by geopolitical events given that UK and US markets will be closed for Good Friday tomorrow.

The GBP/USD currency pair was trading at 1.3827 at 18:13 GMT, having rallied from a low of 1.3746. The GBP/JPY currency pair was trading at 152.96 after rising from a low of 152.29.


© SimonMugo for Forex News, 2021. |
Permalink |
No comment |
Add to
del.icio.us

Post tags: , , , , , , , , , , ,

Feed enhanced by Better Feed from Ozh

us dollar

Author: Simon Mugo

Economics

The Swiss Connection: How Russia Is Weathering Tough Sanctions

The Swiss Connection: How Russia Is Weathering Tough Sanctions

Authored by Alex Kimani via OilPrice.com,

Continued oil and gas exports…

Continue Reading
Economics

European Auto Sales Plunge 20% In April, Extending 10 Month Losing Streak

European Auto Sales Plunge 20% In April, Extending 10 Month Losing Streak

In an ominous sign for the auto industry overseas, new vehicle sales…

Continue Reading
Economics

Is The Housing Crash Starting?

Is The Housing Crash Starting?

Last week, we shared extensive empirical evidence that the US housing market is starting to crack when we quoted…

Continue Reading

Trending