US Manufacturing Data Lifts USD as GBP Suffers

The Pound Sterling to US Dollar exchange rate had reached a two-week high at the start of this week before declining as a result of strong manufacturing data in the US.

The latest ISM manufacturing PMI reported a stronger-than-expected improvement, with the index climbing to 55.6, its highest level since May 2022.

The Pound (GBP) was subdued at the start of this week due to the lack of fresh economic data in the UK, with July's final manufacturing PMI revised lower from 52.8 to 51.9.

Despite some positive developments in the UK economy, including a nine-month expansion in manufacturing and increased output and export demand, the GBP/USD exchange rate was down almost 0.4% on the day at $1.3425.