GBP/USD touches 2-year on soaring dollar

US dollar is soaring after the ISM Manufacturing PMI data. The GBP/USD pair drops for the fifth successive day. So, the stronger US Dollar pushed the pair under 1.1500 for the first time since March 2020. The dollar is sharply rising following the positive US economic data, amid risk aversion and higher yields.

The pair bottomed at 1.1497 and then rebounded toward 1.1550, trimming some of its losses. The US Dollar Index is at the highest level since 2002, up 1% for the day. The dollar was trading with gains and rose further after the US ISM Manufacturing for August showing better than expected reading, including employment index recovery and a slowdown in prices.

Earlier on Thursday, the weekly jobless claims figure was above expectations. The economic figures weighed on the demand for Treasuries sending US yields further to the upside. The US 10-year yield stands at 3.28%, a level last seen in June.

The British pound is among the weakest G10 currencies impacted by deteriorating UK economy. Also market participants show concerns about the next prime minister. Liz Truss is making progress in the polls over Rishi Sunak.