British Pound stalls as mixed US data keeps Fed hawkish bets alive
The Pound Sterling trades sideways versus the US Dollar on Tuesday after a tranche of US economic data was mixed, with business activity dipping in August, while a strong jobs market justified Fed Chair Warsh's hawkish tilt. The GBP/USD trades at 1.3540, down a modest 0.06%.
British Pound held steady against the US Dollar on Tuesday as mixed US economic data kept Federal Reserve hawkish expectations alive. The GBP/USD rate stood at 1.3540, slightly down 0.06%. The Institute for Supply Management's Manufacturing PMI for August read 54.6, below the forecasted 55.2, indicating slower new orders and high input prices.
Meanwhile, the Job Openings and Labour Turnover Survey for July revealed weak hiring, with vacancies rising to 7.217 million, lower than the 7.3 million forecast. The US Federal Reserve, struggling with inflation above its 2% target, has indicated a continued need for rate hikes. In the UK, retailers have hiked prices the most since 2024 due to surging energy, input, and commodity costs.
The Bank of England's Monetary Policy Committee member Catherine Mann recently stated that interest rates should be "a bit too high" and then correct if necessary. Investors are watching the UK Parliament's return this week for insights into Prime Minister Andy Burnham's plans ahead of the October budget.
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