GBP Hits 12-Week Low Against USD Amid Mixed PMIs and Fed Hopes
The British Pound (GBP) has reached its lowest level in 12 weeks against the US Dollar (USD), trading above 1.3272 on Wednesday.
This decline comes as mixed business activity figures from the UK have failed to lift the Pound, while the Greenback maintains a firm tone across the board amid Federal Reserve tightening hopes and optimism about a fresh attempt to reach a peace deal with Iran.
The preliminary S&P Global Purchasing Managers Index (PMI) figures for September revealed that manufacturing activity improved to 52.0 from 51.7 in August, but services activity slowed to 51.7 from 52.5 in the previous month, exceeding market consensus.
ING strategists highlight that the Dollar 'continues to show very good resilience to lower energy prices and a risk-friendly environment,' arguing that this is 'another sign that the Fed story is dominant.'