GBP Surges Past Six-Month Highs Amid Stronger Than Expected UK Business Data

The British Pound (GBP) has hit six-month highs against the US Dollar (USD), boosted by stronger-than-expected UK business activity data. The GBP/USD pair breached the 1.3660 level for the first time since February and is currently trading above 1.3670.

Preliminary data from S&P Global showed that July's UK Services Purchasing Managers Index (PMI) improved to 52.8, beating expectations of a slight decline to 51.8. The Composite PMI ticked up to 52.5, also above forecasts.

However, Manufacturing Activity slowed down to 51.5, in line with market expectations. Strategists at BBH warn that the US Treasury's plan to boost bond buybacks might undermine US fiscal credibility and be a drag on the USD.