TheÂ British pound today reversed its losses against theÂ US dollar andÂ rallied higher from theÂ early European session following theÂ release ofÂ positive UK housing data. TheÂ GBP/USD currency pair extended its rally into theÂ mid-European session despite theÂ release ofÂ disappointing UK Manufacturing PMI data byÂ IHS Markit shortly thereafter.
TheÂ GDP/USD currency pair today rallied from aÂ low ofÂ 1.3095 toÂ aÂ high ofÂ 1.3138 inÂ theÂ mid-European session.
TheÂ currency pair’s rally was initially triggered byÂ theÂ release ofÂ theÂ UK Nationwide house price index early inÂ theÂ European session. TheÂ house price index came inÂ atÂ aÂ monthly 0.6% versus theÂ expected 0.1% translating into anÂ annualized 2.5, which beat theÂ consensus estimate ofÂ 1.8%. TheÂ pair experienced aÂ slight pullback following theÂ release ofÂ theÂ Markit/CIPS UK Manufacturing PMI, which came inÂ atÂ 54.0 missing expectations byÂ 0.2, but quickly reversed direction andÂ headed higher.
Rob Dobson ofÂ Markit commented that:
UK manufacturing started theÂ third quarter onÂ aÂ softer footing, with rates ofÂ expansion inÂ output andÂ new orders losing steam. TheÂ upturn inÂ theÂ sector has eased noticeably since theÂ back-end ofÂ 2017, meaning that manufacturing has failed toÂ provide any meaningful boost toÂ headline GDP growth through theÂ year-so-far.
TheÂ release ofÂ theÂ US MBA mortgage applications data later inÂ theÂ session had aÂ muted impact onÂ theÂ currency pair, which extended its gains.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ theÂ release ofÂ US ADP employment data, ISM Manufacturing data, andÂ theÂ FOMC rate decision.
TheÂ GBP/USD currency pair was trading atÂ 1.3131 asÂ atÂ 11:52 GMT having rallied from aÂ low ofÂ 1.3095. TheÂ GBP/JPY currency pair was trading atÂ 146.92 having risen from aÂ low ofÂ 146.53.
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