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Pound rises to six-month highs versus dollar after UK PMI beat

GBP/USD pushed above 1.3660 for the first time since February, after July UK Services PMI climbed to 52.8 from 52.1.

Reported · Written up by our desk · Major Pairs

The British pound strengthened to fresh six-month highs against the US dollar on Friday, with GBP/USD breaching 1.3660 for the first time since February and trading just above 1.3670.

FXStreet said the move was supported by stronger-than-expected UK business activity, including July’s Services PMI improving to 52.8 from June’s 52.1 versus expectations for a slight decline to 51.8. The Composite PMI also rose to 52.5 from 52.2, beating forecasts for a drop, while manufacturing eased to 51.5 from 51.9.

The report also pointed to UK retail data where consumption contracted 0.5% in July, matching expectations, and reported that Public Sector Net Borrowing increased by GBP 1.8 billion in July.

Meanwhile, FXStreet noted the US dollar stayed on the defensive after the US Treasury signaled bond buybacks could expand beyond the $4 billion per operation previously announced, following a plan to double liquidity to repurchase long-term securities. The outlet linked this to a recent yield pullback dynamic after investors showed reluctance to buy US government bonds amid concerns over rising debt.

Latest closeGBP/USD 1.354 ▲0.3%

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