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
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
