Pound Holds Near Six-Month Highs as US Dollar Bulls Remain Subdued

The British Pound has maintained its gains for the fourth consecutive day against the US Dollar in a calm Monday session. Despite ongoing concerns about the US Treasury's bond buyback plans, which have kept US Dollar bulls subdued, the GBP/USD pair is trading near six-month highs at around 1.3675.

Friday's mixed UK data released on Friday showed retail consumption increased below expectations in July, while August's preliminary services and manufacturing activity data beat expectations, providing some support to the Pound.

The US Dollar was little changed despite preliminary S&P Global Purchasing Managers Index (PMI) data revealing that the services sector grew at its fastest pace in nearly two months. The Greenback fell sharply across the board last week following the US Treasury's announcement of a plan to double buybacks on long-dated securities.

Scotiabank strategists point out that the GBP/USD's underlying trend dynamics remain solidly bullish, with a sustained push above 1.3650/60 implying potential for an extension towards the 1.41 zone over the balance of the year.