GBP/USD remains depressed below 1.3800 post-PMI data, Brexit jitters
- GBP/USD edges higher on Thursday in the Asian session.
- US Dollar Index remains below 92.50 following the previous session’s decline.
- The sterling capitalizes fails to capitalize on the fresh weakness in the US dollar.
GBP/USD edges higher on Thursday’s Asian trading session. The pair opened lower but managed to trade higher on broad-based USD selling.
At the time of writing, GBP/USD is trading at 1.3776, up 0.05% % for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades below 93.00 with 0.08% losses post FOMC Chairman Jerome Powell comments at the Jackson Hole symposium.
The US 10-year Treasury yields drift lower to trade at 1.30% down 0.13% for the day.
The US ADP Employment data overshadowed the better than expected ISM PMI. The US Private sector added 374K jobs in August, well below the market expectations of 613k rise, whereas the ISM Manufacturing PMI jumped 59.9 in August from 59.5 in July, beating the market forecast of 58.6.
On the other hand, the sterling battles with Brexit chaos, the pessimism surrounding the EU-UK ties over the Northern Ireland (NI) protocol remain a challenge for the British pound.
The Nothern Ireland’s Economy Minister Gordon Lyons said there would be more problems if grace periods expired as planned on 1 October.
As for now, investors turn their attention to US Initial Jobless Claims, Balance of Trade, Nonfarm productivity QoQ, and Factory orders to take fresh trading impetus.
GBP/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
