GBP/USD Range-Bound as US Data and BoE Expectations Weigh on Sterling
The Pound Sterling (GBP) is experiencing a mixed bag against the US Dollar (USD), trading near 1.3540 on Tuesday as traders weigh in on recent US economic data and shifting expectations from the Bank of England (BoE).
US manufacturing activity softened in August, with the ISM Manufacturing PMI declining to 54.6 from 55.6 in July and falling short of the 55.2 market forecast.
The Institute for Supply Management noted slower new-order growth, while elevated input costs continued to highlight persistent inflationary pressure.
Meanwhile, the UK is grappling with its own policy uncertainty, as BoE MPC member Catherine Mann argued that interest rates should remain somewhat restrictive before being adjusted if necessary. She also pointed to stronger economic activity between the latest policy meetings.