GBP Trims Gains as Revised UK Manufacturing Data Weighs on Sterling

The British Pound (GBP) has retreated from its recent highs against the US Dollar (USD), falling to the 1.3400 area on Monday after a downward revision of UK manufacturing data.

The July S&P Global Manufacturing Purchasing Managers' Index (PMI) was revised down to 51.2, lower than initial estimates of 52.8, indicating a moderate slowdown in the sector's activity.

This news has added pressure on the Pound, which had rallied at the Asian session opening due to hopes of a diplomatic breakthrough between the US and Iran.

Analysts at Deutsche Bank noted that the Bank of England (BoE) was not 'edging towards a rate hike', leading investors to dial back expectations for BoE hikes, with the implied probability of a September move dropping from 60% to 30%.