Pound Bounces Steadily As UK Equities Hit One Month High

Published on Jul 25, 2023 14:29

The British Pound edged up a little today, cutting recent wave of losses as supportive UK equities and a mild correction in the US dollar overseas provided some support for the currency. The GBPUSD pair had slipped in last few days, testing a two week low near 1.2800 yesterday as the US dollar saw a bounceback from 15 month low. However, the dollar index has softened today as market braces for the US Fed monetary policy meeting outcome tomorrow. The GBPUSD pair currently quotes at 1.2858, up 0.23%. Pound is the best performing major currency today amid a mostly sedated session for the fx market but the rally has come on the heels of a dampening UK private sector data yesterday and could be indicating that the currency may have carved out a short term bottom. The UK private sector expanded at the slowest pace in six months in July as rising interest rates, high inflation and uncertain economic outlook weighed on business activity. The flash composite output index dropped to a six-month low of 50.7 from 52.8 in the previous month, survey results from S&P Global and the Chartered Institute of Procurement & Supply showed. Meanwhile, the UK equities are holding steady today with the FTSE100 index hitting 7700- its one month high mark.