GBP/USD closes in on 1.4000 as focus shifts to US PMI data
|- GBP/USD continues to push higher toward 1.4000 on Wednesday.
- US Dollar Index struggles to gain traction following the two-day decline.
- Markit Manufacturing PMI for US is expected to edge lower to 61.4 in June.
The GBP/USD pair capitalized on the broad selling pressure surrounding the greenback and closed the last two days in the positive territory. On Wednesday, the pair continues to edge higher and was last seen trading at its highest level in six days at 1.3988, rising 0.3% on a daily basis.
Latest Brexit headline supports GBP
Earlier in the day, the data from the UK showed that the Markit Manufacturing PMI retreated to 64.2 in June's preliminary reading, compared to analysts' estimate of 64. Meanwhile, Irish national broadcaster RTE reported on Wednesday that the EU member states have agreed to grant the UK a three-month extension to the Northern Irelan protocol and helped the GBP preserve its strength.
Later in the session, the IHS Markit's preliminary Services PMI and Manufacturing PMI reports from the US will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is posting small daily losses near 91.60, allowing the GBP/USD's bullish momentum to remain intact.
Meanwhile, Wall Street's main indexes remain on track to start the day flat, suggesting that the risk perception is unlikely to provide a directional clue to the USD.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.