The Pound Sterling retreated from the highs it hit last week versus the US Dollar after the latest economic data brought to light more worrying signs for the UK economy. Analysts feel that that is likely to result in an interest rate cut at the upcoming Bank of England policy meeting. The latest data released by Markit Economics showed July’s PMI number for the manufacturing sector falling to 48.2, against expectations of a flat 49.1. Any number below the 50 threshold is indicative of a contracting sector. That is weighing broadly on the Pound Sterling.
As reported at 10:51 am (BST) in London, the GBP/USD was trading at $1.3191, down 0.31%; the pair has ranged from a peak of $1.3271 to a low of $1.3170 which it hit shortly after the data release. The EUR/GBP is higher t 0.8474 Pence, a gain of 0.33% and near the pair’s daily high of 0.8476 Pence.
Euro Struggles Despite Upbeat PMI
Markit Surveys were also released for the Eurozone and were surprisingly upbeat for the Eurozone as a whole, and for Germany, with readings of 52.0 and 53.8, respectively. Both figures beat economists’ estimates. The Euro was not helped to any great extent, however, with the EUR/USD barely inching higher to $1.1176 a gain of only 0.01%; the pair’s earlier high was at $1.1183 while the session low was $1.1157.