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The GBP/USD pair jumps from YTD lows after US economic data reignited recession fears. US S&P Global PMIs were mixed, though reignited recession fears.
The GBP/USD is trading at 1.1860, after hitting a YTD low at 1..1716, so the major swang more than 100 pips as a reaction to the abovementioned data, while sentiment shifted positively, with US equities gaining.
The S&P Global Manufacturing PMI in the UK dropped to the contractionary territory. The GBP/USD recovered some ground bouncing from weekly lows below the 1.1800 figure due to negative US economic data, which increased fears of a US recession. Consequently, the dollar fell, alongside US Treasury bond yields, while most G8 currencies advanced.
The US S&P Global PMI Composite for August showed that business activity in the US contracted for the second consecutive month. On the contrary, the Manufacturing PMI, although slowed, remained in expansionary territory, at 51.3, lower than expected.
The latest reading depicts the Composite Index at 45, less than estimates of 47, while the Services PMI plunged to 44.1, below forecasts.
Pound, Sterling
