GBP/USD posts modest gains above the mid-1.2600s amid mixed US data
|- GBP/USD trades on a stronger note near 1.2663 in Friday’s early Asian session.
- The US labour market remains robust, with jobless claims declining.
- The UK preliminary Manufacturing PMI for February came in at 47.1 versus 47.0, better than expected.
The GBP/USD pair posts modest gains above the mid-1.2600s during the early Asian trading hours on Friday. The decline of the US Dollar (USD) provides some support to the major pair. At press time, GBP/USD is trading at 1.2663, adding 0.02% on the day.
The US Initial Jobless Claims for the week ending February 17 fell to 201K from the previous weeks of 213K. Continuing Claims dropped to 1.862M, below expectations and the prior week. The report suggested the US labor market remains robust and might convince the Federal Reserve (Fed) to delay cutting interest rates.
Investors have pushed back their expectations for the first rate cut from the Fed to June from May due to a solid job market and hotter-than-expected inflation readings in January.
On Thursday, the US Manufacturing PMI improved to 51.5 in February from 50.7 in the previous reading, better than the estimation of 50.5, the highest reading in 16 months. Meanwhile, the Services PMI eased to 51.3 in February from 52.5 in January, weaker than 52.00 expected.
On the Pound Sterling front, the UK preliminary Manufacturing PMI for February came in at 47.1 versus 47.0, missing market expectations of 47.5. The Services PMI was unchanged at 54.3 but above the consensus of 54.1. Finally, the Composite PMI arrived at 53.3, against expectations and the previous reading of 52.9.
Moving on, investors will take more cues from the Fed Christopher J. Waller speech on Friday. Next week, the US Gross Domestic Product Annualized (GDP) for the fourth quarter will be released.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.