Pound US Dollar Exchange Rate: GBP Drops -0.4 Per Cent On Static Manufacturing PMI
The pound has fallen by -0.4 per cent against the US dollar today, meaning it is trading at an exchange rate of $1.315. This rate is above last week’s low of $1.306, but still represent a poor start to the week for Sterling traders.
The latest UK data, a manufacturing PMI reading for June, has failed to help the pound US dollar exchange rate.
The measurement of sector activity has risen marginally from 54.3 to 54.4 points, indicating a fractionally higher level of growth during the previous month.
This has both beaten and missed expectations, as some economists had forecast a higher level of sector activity while others were predicting a slowdown.
Emphasising the inconclusive nature of the data, IHS Markit Director Rob Dobson said: “The UK manufacturing sector ended the second quarter on a subdued footing.
“The slowdown in new order growth since earlier in the year has… left manufacturers increasingly reliant on backlogs of work and inventory building to maintain higher output.
“This is a position that cannot be sustained far beyond the immediate horizon. The trend in demand will need to stage a much firmer rebound if a further slowdown in output growth is to be avoided.”
On the other side of the pairing, the US dollar has advanced against the pound despite gains being limited by the latest comments from President Trump.
Overnight, Mr Trump further inflamed tensions between the US and the EU by likening trade practices to Chinese ones.
He said: “The EU is possibly as bad as China, just smaller. It’s terrible what they do to us.
“Take a look at the car situation … we can’t send our cars [into the EU].
“Look what they do to our farmers, they don’t want our farm products.
“In all fairness they have their farmers so they want to protect their farmers. But we don’t protect ours and they protect theirs.”
Sticking with PMI news, this afternoon will bring a pair of US manufacturing sector activity measures, both covering June.
ISM’s manufacturing PMI is predicted to show a minor slowdown in sector activity, while Markit analysts are conversely predicting a small rise.
The ISM reading is considered the more important of the two, so the US dollar might decline in value this afternoon.
Beyond this, the pound US dollar exchange rate could drop on Tuesday morning if the UK’s June construction PMI shows an as-expected decline.
courtesy : express.co.uk
photo : express.co.uk
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