GBP/USD

Sterling yet again struggled to hold onto the EUR 1.17000 handle following improved EU economic data on Monday as traders/investors await Thursday’s Bank of England policy meeting and statement. Against the US Dollar and for the second day, the Pound traded either side of the pivotal $1.3900 in Asia overnight. UK Covid cases fell to lowest level for five weeks as 21,952 new infections were recorded.

USD
The US Dollar is relatively unchanged this morning after the ISM index of national factory activity fell to 59.5 last month, the lowest reading since January. As a result, there was moderate Dollar buying and major stocks/indices ended lower on the day, backing off from record highs again. Latest factory orders for July are released at 3pm.

EUR
Manufacturing PMI’s from Germany and Eurozone rose above consensus in July, the result of which saw Euro demand over the Pound. Against the Dollar the common currency is relatively unchanged, major support remains at $1.1850. June producer prices for the Eurozone are released at 10.am.