Pound Takes Hit as Strong US Data Boosts Dollar

The British Pound took a hit on Monday, falling by 0.27% as the US Dollar regained some ground.

The GBP/USD pair traded at 1.3439 after reaching a daily high of 1.3506, with market sentiment influenced by stronger US ISM Manufacturing PMI data and easing oil prices.

The US ISM Manufacturing PMI for July improved from 53.5 to 55.6, exceeding estimates of 54, while the employment sub-component increased for the first time since 2023 and prices paid indicated elevated input costs.

In the UK, investors are digesting the new government's fiscal policy, with Chancellor John Healey instructing cabinet ministers to make cuts to their budgets in an effort to fulfill spending commitments.