The Pound Sterling (GBP) is trimming some of its earlier gains versus the US Dollar (USD) on Monday and begins the week on an upbeat mood after Flash PMIs in both sides of the Atlantic came mixed. At the time of writing, GBP/USD trades at 1.2933, up 0.16%.
Sterling trims early strength but stays afloat above 1.29, traders digest PMIs and brace for UK CPI, US PCE
The market mood improved as traders seemed relieved that the United States (US) reciprocal tariffs will be targetted to certain countries.
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 United Kingdom (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 will feature 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.
Source: Fxstreet
