Forex
GBP/USD Hits Five-Month High on Strong UK Data and US Treasury Buybacks
The GBP/USD currency pair rose to a five-month high of 1.3670 on Friday, fueled by strong UK services data and the US Treasury's buyback program.
The S&P Global Flash UK Services Business Activity Index surged to 52.8 in August, exceeding every forecast in the Reuters poll and marking a six-month high.
This beat came despite a domestic data miss, with retail sales contracting 0.5% in July, but sterling showed no immediate reaction and continued its upward trend.
The dollar's weakness was also a significant contributor to the pair's gain, as the US Treasury's buyback program has been pulling cash out of the Treasury General Account and into the private system.