GBP Sinks as Booming US Data Fuels Dollar Rally

The British Pound (GBP) experienced significant losses against the US Dollar on Wednesday, falling by over 0.70%. The GBP/USD pair traded at 1.3253, its lowest level since July 1.

This decline was largely driven by positive economic data from the United States, which showed a surge in business activity across various sectors. The S&P Global Flash Manufacturing PMI and Services PMI both exceeded forecasts, with readings of 57 and 58.7 respectively.

Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that 'business is clearly booming now in both manufacturing and services,' but added that growth was being accompanied by severe supply chain bottlenecks.