Read the story here. Advertise at Before It's News here.
Profile image
By Pound Sterling Forecast (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

GBP USD Exchange Rate Dragged Lower by Risk-Off Mood in Markets 

% of readers think this story is Fact. Add your two cents.

The pound ended the week by extending its losses against the dollar, as things went from bad to worse for the UK currency.  

On Friday, the risk-sensitive pound fell to within a whisker of 1.20 amid renewed fears of a global recession – having started the week at 1.23.  

This was compounded by data showing growth in the UK manufacturing sector continued to slow in June to a two-year low.  

The closely watched S&P Global/CIPS manufacturing purchasing managers’ index (PMI) posted a reading of 52.8 last month, down from 54.6 in May. A score above 50 reflects that the industry is expanding. 

Rob Dobson, director at S&P Global Market Intelligence, said: “UK manufacturing output growth ground to a near standstill in June, as intakes of new work contracted for the first time since January 2021. Domestic market conditions became increasingly difficult and foreign demand fell sharply again, stifled by Brexit, transport disruption, the war in Ukraine and a global economic slowdown.” 

US factory activity slows sharply

The safe-haven dollar was ready and waiting to shelter risk-sensitive investors from the global economic gloom, sending it higher. 

An eagerness by central banks to hike interest rates to tame inflation at the expense of economic growth triggered selloffs of risky assets across markets and lifted safer bets like the US currency. 

Speaking earlier in the week, Federal Reserve Chair Jerome Powell suggested that the risk of harm to the economy from higher borrowing costs was less important than restoring price stability – but his comments did little to prevent a risk-off mood in markets. 

Activity in the US manufacturing sector continued to decelerate in June as output stalled and new orders contracted, data showed on Friday. 

The S&P Global manufacturing PMI retreated to 52.7 last month from 57 in May, indicating that factory activity grew at its slowest pace in almost two years. Economists expected the PMI to come in at 52. 

The data suggest that the manufacturing industry is restricting economic growth – a concerning trend that’s likely to intensify through the summer, said Chris Williamson, chief business economist at S&P Global. 

“Forward-looking indicators such as business expectations, new order inflows, backlogs of work and purchasing of inputs have all deteriorated markedly to suggest an increased risk of an industrial downturn,” 

Looking ahead

US markets will be closed on Monday for the Independence Day holiday, while the UK calendar has nothing pencilled in until Tuesday.

To get in touch and receive further insight into the factors that could impact your overseas payments, click the button below and complete the form on the Lumon website.


The post GBP USD Exchange Rate Dragged Lower by Risk-Off Mood in Markets  appeared first on Pound Sterling Forecast.


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.