GBP/USD Selloff Continues Amid Recession Fears
The Pound to Dollar exchange rate (GBP/USD) has continued its decline as new US economic data signals a possible recession.
Dollar Rises as US Stocks Fall
The dollar gained strength while US stocks dropped in response to a risk-off reaction. A survey of US manufacturers showed the sector is stagnating, with rising pricing pressures.
US Manufacturing PMI Indicates Contraction
The ISM’s manufacturing PMI for August came in at 47.2%, below expectations of 47.5%. Any figure below 50 indicates contraction. This drop reflects renewed inflationary pressures, worrying markets about limited future rate cuts from the Federal Reserve.
Eurozone Inflation Data on the Horizon
In the Eurozone, producer price inflation is expected to remain sharply negative at -2.5% for July. This trend could further influence market sentiment in the region.
US Job Vacancies Expected to Hold Steady
The US JOLTS job vacancies report for July is anticipated to remain stable at 8.1 million. Barring any major surprises, this data is unlikely to have a significant impact on currency markets.
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