On Friday, the GBP/USD hit a 5-month peak at $1.3170.
The Pound Sterling steadied during the London trade on Monday as FX traders assess the UK government's proposed strategy of localized quarantines and lockdowns. Given the recurrence of Covid-19 cases and deaths, the government set out some stricter rules last week, most notably in Manchester where there was a surge in Coronavirus cases, while postponing some planned reopenings in other areas of the UK. Markets are also looking forward to Thursday's policy meeting at the Bank of England. On Friday, the GBP/USD hit a 5-month peak at $1.3170, largely due to weakness in the US currency rather than the strength of the Pound, however.
As of 11:15 am in London, the GBP/USD was trading at $1.3038, down 0.3371% and slipping from the session peak of $1.31136. The EUR/GBP was higher at 0.9004 Pence, up 0.0922%; the pair has ranged from a low of 0.89817 Pence to a peak of 0.90159 Pence. The GBP/JPY was lower at 137.852 Yen, a loss of 0.5333%.
Markets Look to US PMI Data
The Pound seems to be seeing a knee jerk reaction to a disappointing PMI number; Markit reported that the UK Manufacturing sector's reading came in at 53.3 in July, against an expected 53.6. Market attention will focus on PMIs out of the US later today. The ISM Manufacturing PMI is projected to come in at 53.6, a rise from last month's 52.6. The Markit Manufacturing PMI is likely to see a slight increase to 52 from 51.6.