Pound Extends Decline Against USD On Disappointing PMI; GBPINR Briefly Slips Under 105 During Intraday Moves

Published on Jul 24, 2023 15:17

Pound extends decline against the dollar on Monday, sliding to a two week low and giving up $1.29 levels amid disappointing PMI data. Flash manufacturing as well as services PMI in Britain worsened in the month of July suggesting bleak economic conditions. S&P Global/CIPS United Kingdom Composite PMI fell to 50.7 in July 2023, down from 52.8 in the previous month. Flash Manufacturing PMI came in at 45.0 whereas services PMI at 51.5, both sharply lower in July, highlighting a considerable slowdown in business activity growth across the UK private sector economy. The latest rise in output levels was the weakest for six months, largely due to flat lining new orders and sharply reduced backlogs of work. GBPUSD plunged to a low of $1.2810 in immediate reaction to the data and is steadying currently at $1.2839, down 0.2%. Dollar marching forward around 101 mark ahead of Fed`s FOMC this week is also keeping pound under pressure. On the NSE, GBPINR futures briefly lost ground below 105 levels but the pair is currently seen at 105.04.