The Pound Maintains Its Gains Against The Dollar Despite Selling Pressures

The British pound maintained its gains against the US dollar and the euro, although it fell slightly in early trading on Tuesday. It maintained its gains that exceeded 1% during Monday’s trading, in conjunction with the recovery of risk appetite in global markets and the recovery witnessed in stock markets yesterday, as the sterling pound managed to recover from its lowest level in two months, which it reached last week.

On the other hand, the Commitment of Traders’ Commitment Report issued by the CFTC showed that major traders tended to reduce their buying positions on the pound during the week ending on Tuesday 17 August, which means that investors are less optimistic about the pound compared to what was previously.

Data released on Monday also showed that the recovery of the British economy has slowed sharply following the imposition of lockdown restrictions, as companies struggle with shortages of labor and materials. As a result, the composite PMI index declined for the third consecutive month, more than market expectations.

During today, at 9:40 am GMT, the GBPUSD pair is trading stable around the $1.3710 level. While the EURGBP pair is rising by 0.05% to 0.8558 pounds. While the GBPNZD pair is falling by 0.58% towards 1.9775 NZD.