Pound Weakens as Booming US Economy and Hawkish Fed Comments Boost Dollar
The British Pound has weakened against the US Dollar after strong economic data from the United States sent the US Dollar Index above the 101.00 barrier for the first time since July 30.
US PMIs surged in September, with manufacturing and services activity expanding at a faster pace than expected, according to S&P Global's Flash Manufacturing PMI and Services PMI reports.
Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that 'business is clearly booming now in both manufacturing and services' but warned of severe supply chain bottlenecks and staff shortages.
Fed Governor Michael Barr added his name to the list of known hawks on the FOMC, stating that additional rate hikes are likely needed to ensure a timely return to the 2% inflation target.