GBP/USD retreats from monthly highs amid higher US Treasury yields, UK PMI eyed
- GBP/USD starts the fresh trading week on a lower note in the Asian session.
- US Dollar Index rebounds from the earlier lows but remains pressurized below 92.00.
- The sterling continues to track Brexit news, a tax hike on the cards.
The GPD/USD pair prints minute losses on the first trading day of the week. The pair opened higher but failed to sustain the gains.
At the time of writing, GBP/USD is trading at 1.3853 down 0.09 % for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, rebounds from the early lower levels and trades near 92.30 with 0,04% gains.
The US 10-year Treasury yields stand strong at 1.32% with 0.28% gains on the mixed US economic data.
The US Nonfarm Payroll (NFP) came as a big disappointment for the USD buyers. The US economy added just 235,000 jobs against the market expectations of 750,000 new hires, a big miss. The Unemployment rate dropped t0 5.2% from 5,4% as per the market expectations, data released on Friday revealed.
On the other hand, the sterling previous week’s gains were evaporated over freshly brewed negative sentiment around Brexit. Britain’s Brexit minister on the weekend warned of a long-term chill in relations with the European Union (EU), if the trading conflict over Northern Ireland (NI) was not resolved.
The US stock market will remain closed on Monday on the account of Labor day.
As for now, investors turn their attention to the critical UK Construction Purchasing Managers Index (PMI) data to take fresh trading impetus.
GBP/USD additional levels