Pound Steadies after Lockdown Measures

Barbara Zigah

On Friday, the GBP/USD hit a 5-month peak at $1.3170.

GBPThe 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%.

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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.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

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