- Investors looked past Wednesday’s weaker US services PMI.
- The USD remains on the defensive after disappointing ADP report.
- Traders now eye US ISM non-manufacturing PMI for a fresh impetus.
The GBP/USD pair extended its steady recovery from two-week lows and is currently placed in the neutral territory, around the 1.2585 region post-US data.
The pair remained under some selling pressure for the third consecutive session on Wednesday and added to this week’s losses following the release of lacklustre UK services PMI, which fell to 50.2 in June from 51.0 previous and consensus estimates.
The latest disappointment added to this week’s awful UK PMI prints (manufacturing and construction), which against the backdrop of persistent fears of a no-deal Brexit further dented the already weaker sentiment surrounding the British Pound.
The pair dropped to an intraday low level of 1.2557 but managed to find some respite at lower levels amid persistent US Dollar selling bias, led by the ongoing downfall in the US Treasury bond yields to fresh multi-year lows – below the key 2.0% mark.
The greenback lost some additional ground in reaction to yet another disappointing ADP report, showing that the US private-sector employer added 102K new jobs in the month of June as compared to market expectations for an addition of 140K.
Wednesday’s US economic docket also features the release of ISM non-manufacturing PMI, which will be looked upon for some immediate respite for the USD bulls and might also produce some short-term trading opportunities.
Technical levels to watch
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