- GBP/USD edges higher on Monday in the Asian session.
- US Dollar Index slips from the previous week’s high on improved risk sentiment among investors.
- The sterling gains despite downbeat economic data.
GBP/USD edges higher on Monday’s Asian trading session. The pair opened lower but recovered swiftly to touch the intraday high above 1.3650.
At the time of writing, GBP/USD is trading at 1.3651, up 0.26 % for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades at 93.33 with 0.18% losses in a possible delay in Fed’s taper talk and general risk-off mood.
On the other hand, the sterling managed to gain some traction despite the downbeat economic data.
The Retail Sales fell 2.5% in July as compared to the previous month, while markets had a forecast a modest growth whereas UK’s GKF Consumer Confidence Index dropped to -8 in August from -7 in the previous month.
Meanwhile, the Bank of England’s (BOE) hawkish stance capped the downside for the pound.
As for now, investors turn their attention to the UK Markit/ CIPS Manufacturing Purchase Manager Index (PMI), and US Markit Manufacturing PMI to gauge the market sentiment.
