UK Pound Benefits From Mild Dollar Pull Back; GBPINR Up More Than Half A Percent

Published on Aug 04, 2023 12:22

UK`s pound is seen recovering from around one month low of Friday amid a mild pullback in the dollar overseas. The GBPUSD pair however continues to stay below $1.28 mark, currently trading at $1.2717, up 0.11% on the day. The dollar index that measures the greenback against a basket of currencies is witnessing a mild pull back since early Asian hours on Friday awaiting crucial non-farm payrolls data due later today. Data from US showed initial jobless claims crept up to 227,000, an increase of 6,000 from the previous week`s unrevised level of 221,000. ISM said its services PMI slipped to 52.7 in July from 53.9 in June, although a reading above 50 still indicates growth. Meanwhile, factory orders spiked by 2.3 percent in June after climbing by an upwardly revised 0.4 percent in May and labor productivity rebounded by 3.7 percent in the second quarter after slumping by a revised 1.2 percent in the first quarter. Yesterday, the Bank of England (BoE) raised interest rates by 25 basis points (bps) to a 15-year high of 5.25% from 5% in its August policy meeting on Thursday. On the NSE, GBPINR August futures are trading higher by more than half a percent on the day at 105.35.