The Pound Sterling trimmed some of its earlier gains versus the US dollar on Monday, starting the week on an upbeat mood after Flash PMIs in both sides of the Atlantic, came mixed. GBPUSD was trading at 1.2933, up 0.16%.
The market mood improved as traders seemed relieved that the US would target certain countries with reciprocal tariffs.
Data-wise, S&P Global revealed that manufacturing activity in the US deteriorated sharply, as depicted by the S&P Global Manufacturing PMI in March, which dipped from 52.7 to 49.8, below estimates for a 51.7 expansion.
Contrarily, the S&P Services PMI expanded from 51.0 to 54.3 for the same period, crushing estimates for a 50.8 deceleration.
In the UK, flash PMIs were mixed, with services expanding, but manufacturing contracting due to worries about tariffs. Elsewhere, traders’ focus shifts to the Chancellor of Exchequer Rachel Reeves’ Spring Budget statement and the release of consumer price index (CPI) figures.
The US economic docket features Fed speakers, Durable goods orders, Q4 2024 GDP final reading, and the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditure (PCE) Price Index.
GBPUSD chart by TradingView
(Source: OANDA)