- The pound is even more appreciated and reaches new 4 years about 1,3800.
- The United Kingdom’s manufacturing PME remained unchanged, but employment production and new orders fell.
- The fears of US debt and Trump attacks on Fed are harming the US dollar.
The pound is accelerating its upward trend on Tuesday, without being affected by the data of the United Kingdom manufacturing PMI, which are quite pessimistic. The weakness of the US dollar is promoting markets today, with uncertainty about tariffs, renewed concerns about US fiscal health and growing bets on fed cuts that crush the demand of the US dollar.
The manufacturing activity in the United Kingdom has remained stable at 47.7 in June, but the new orders, employment and production fell compared to the previous month, which points to greater contraction in the coming months.
The US debt, the hopes of fed cuts are hitting the USD
However, these figures have failed to stop the pound rally. The GBP/USD shows almost 0.4% so far today, after having reached its highest levels since October 2021, in 1,3790.
In the US, the growing concerns about the impact of Trump’s “great and beautiful bill” on the country’s fiscal health are weighing on the USD, since the bill is going through a long voting process in the Senate.
Beyond that, Trump continued to attack the president of the Fed, Powell, asking for much lower interest rates and increasing hopes that the bank softens its monetary policy between two and three times in the second half of the year. Later today, Powell will talk at a central banker summit in Sintra and could provide more information about the Bank’s monetary policy plans.
GBP/USD: The main resistance is in 1,3800 – UOB Group
The FX strategy team of the UOB group sees the GBP/USD in an upward trend, with a Main technical resistance in 1,3800: “We became positive about the Libra last Thursday. On Friday, we highlight that ‘the prospects for the pound remain positive, but can be consolidated for a couple of days first; the next technical objective is 1,3800.’ We will maintain this opinion as long as the ‘strong support’ in 1,3645 is not broken (level that was previously in 1,3610). “
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Economic indicator
PMI Global S&P manufacturing
The Manufacturing Purchase Managers Index (PMI), published monthly by S&P globalit is an advanced indicator that measures business activity in the manufacturing sector of the United Kingdom. The data is derived from surveys to senior executives of private sector companies. The responses of the survey reflect the change, if there is, in the current month compared to the previous month and can anticipate changing trends in official data series such as the Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with 50.0 levels that indicate that there are no changes compared to the previous month. A reading above 50 indicates that the manufacturing economy is expanding in general, which is an upward sign for sterling pound (GBP). Meanwhile, a reading below 50 points out that the activity among goods producers is generally decreasing, which is considered bassist for the GBP.
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Last publication:
Mar Jul 01, 2025 08:30
Frequency:
Monthly
Current:
47.7
Dear:
47.7
Previous:
47.7
Fountain:
S&P global
4 years
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
