Ongoing US Treasury bond buyback concerns and mixed UK data keep the Pound steady against a subdued US Dollar.
The British Pound (GBP) extended its four-day gain streak against the US Dollar (USD), trading at 1.3675 in early London trading, just shy of six-month highs. Weakness in the Greenback followed the US Treasury’s plan to double buybacks on long-dated securities, aimed at curbing Treasury yield rallies.
UK retail sales rose below expectations in July, but August’s preliminary services and manufacturing PMI data surpassed forecasts, offering modest support to GBP. In the US, services PMI grew at its fastest pace in nearly two months, though the USD showed little reaction.
Market focus has shifted to impending US sanctions on Iran, with Treasury Secretary Scott Bessent pledging an “economic D-Day” for the Islamic Republic. Strategists at Scotiabank maintain a bullish outlook for GBP/USD, citing solid underlying trend dynamics.