Pound Weighed Down by Data

Barbara Zigah

The US Dollar Index had struck a 2-year low and remains under heavy pressure.

The Pound Sterling was holding on to recently earned gains and remaining within striking distance of the $1.30 level against the US Dollar, though concerns about the UK economy are weighing on sentiment. The latest data from the Office of National Statistics in the UK showed that preliminary second-quarter GDP had fallen to -20.4% on a quarter-over-quarter basis, marginally better than the experts' forecast of -20.5% and significantly worse than the previous -2.2 reading. Manufacturing production on an annualized basis was also slightly better than the predictions, coming in at -14.6 against a forecast of -15%. Industrial production, year-over-year, was -12.5%, against -12.8% predicted. On a month-over-month basis, manufacturing and industrial production came in at 11% and 9.3%, with forecasts of 10% and 9.2%, respectively.

As of 11:21 am in London, the GBP/USD was trading at $1.3045, down 0.0314%, off the session peak of $1.30684. The EUR/GBP was higher at 0.9020 Pence, a gain of 0.2813%; the pair has ranged from 0.89840 Pence to 0.90247 Pence in today's trading day. The GBP/JPY was higher at 139.386 Yen, up 0.2553%.

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Senate Stalemate Impacts Dollar Sentiment

USAIn the US, the ongoing stalemate between the rivaling parties in the US Senate is weighing on sentiment. The differences in regard to a relief package to help mitigate the fallout of the Coronavirus pandemic have not yet been gapped. As a result, the US Dollar Index had struck a 2-year low and remains under heavy pressure, trading currently at 93.52. DXY, down 0.12%. Later today, the US Department of Labor Statistics will be releasing personal inflation data. Currently, analysts are predicting that July's core CPI (which strips out food and energy components) will be flat at 0.2% on a month-over-month basis, and will fall to 1.1% on a year-over-year basis. The EUR/USD is currently trading at $1.1769, up 0.2291%, off the session high of $1.17757.

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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