The Pound Sterling remains under heavy pressure, with sentiment eroding in the wake of the most recent terror attack in London and the upcoming general election. The Pound is also feeling the impact of the latest economic data, specifically today’s PMI report on the services sector, which was unexpectedly disappointing with a 53.8 reading in May. Divergent polls on the outcome of the general election are also tempering sentiment, with the latest poll now suggesting that the voting will be very close and could possibly lead to a deadlocked Parliament, an outcome that would not be beneficial to the Prime Minister, Theresa May, who is hoping for the upper hand in the upcoming Brexit negotiations.
As reported at 11:14 am (BST) in London, the GBP/USD was trading higher at $1.2907, a gain of 0.15%; the pair has ranged from a low of $1.28515 to a peak of $1.29145 in today’s trading session. The EUR/GBP was down, trading at 0.8724 Pence, a loss of 0.34%, moving off the session trough of 0.87218 Pence while the high was at 0.87750 Pence.
Dollar Outlook Uncertain
In the US, the US Dollar is recovering from the 7-month trough hit last week, following worsening economic data and the diminished likelihood that the Federal Reserve is on the verge of a rate hike. A slew of data, including manufacturing and services sector PMI reports as well as factory orders, will be released today which could better pinpoint sentiment for the greenback. The EUR/USD is currently trading at $1.1264, down 0.17% and off the session low of $1.12596.