The GBP/USD pair dropped to a fresh 10-week low, pressured by a stronger U.S. dollar and concerns over the U.K.’s economic outlook. As traders gear up for the release of global PMI data, the British pound continues to face headwinds, reflecting investor uncertainty about slowing growth in the U.K. and potential shifts in global economic conditions.
The pair’s decline comes as the U.S. dollar remains robust, supported by expectations that the Federal Reserve will keep interest rates elevated. In contrast, the Bank of England’s cautious stance on further rate hikes, amid growing signs of economic softness in the U.K., has left the pound vulnerable to downward pressure.
Source – FXStreet
With the upcoming global PMI prints set to provide key insights into the health of major economies, including the U.K., market participants are bracing for potential volatility. These reports could offer clues about the global growth outlook and the direction central banks may take in their monetary policies.
For now, the GBP/USD remains under pressure, with the pair’s trajectory hinging on both economic data and central bank actions. If the global PMI data reveals further weakness in the U.K. or a stronger-than-expected U.S. economy, the pound may struggle to regain ground in the near term.
