The Pound Sterling steadied against its US counterpart after an unexpectedly improved manufacturing survey showed an increase in output, albeit a small one, offering some hope to FX traders after the collapse as a result of the Coronavirus. The June PMI for the manufacturing sector was reported at 50.1, up from the previous month's reading of 40.7; any reading above the 50 threshold is indicative of an expanding sector. The Pound was in favor during trade yesterday after the Prime Minister announced his plans to restore the UK economy, though most of the information provided had already been considered. What is limiting gains continues to be the concern that the UK-EU trade agreement will not be in place by the year end deadline.
As of 11:09 am in London, the GBP/USD was trading at $1.2403, a gain of 0.0411% and off the earlier peak of $1.24148. The EUR/GBP was lower at 0.9037 Pence, a loss of 0.2286%; the pair has ranged from 0.90347 Pence to 0.90802 Pence in this session.
US Data Eyed for Dollar Direction
A slew of data for the US will be released later today including labor data and PMIs for the manufacturing sector. The minutes from the most recent Federal Reserve policy meeting will also be released. Economists are predicting that the ADP employment change for June will show an increase of 3 million new jobs while the ISM Manufacturing survey will come in flat at 49.6. The Dollar had been under some pressure as a result of uncertainty for the future, especially given the escalating number of individuals who have contracted Covid-19.