- The US manufacturing PMI-led intraday uptick ran out of the steam rather quickly.
- Surging US bond yields underpinned the USD and prompted some aggressive selling.
- Dismal US ISM manufacturing PMI for September helped ease the bearish pressure.
The GBP/USD pair tumbled to near one-month lows during the early North-American session, albeit managed to find some support just ahead of the 1.2200 round-figure mark post-US ISM PMI.
After an initial uptick to an intraday high level of 1.2313, touched in reaction to slightly better-than-expected UK manufacturing PMI, the pair met with some fresh selling pressure and extended its recent sharp pullback from two-month tops amid the ongoing US Dollar upsurge to two-year tops.
USD bullish run pauses after weaker US ISM PMI
Against the backdrop of growing optimism over a resolution of the prolonged US-China trade dispute, a strong follow-through intraday upsurge in the US Treasury bond yields provided an additional boost to the greenback and turned out to be one of the key factors behind the pair’s sharp intraday slide.
Meanwhile, the buck and the US bond yields turned lower following the disappointing release of US ISM manufacturing PMI, which recorded its worst reading since June 2009 and fell to 47.8 in September. A modest USD pullback helped the pair to rebound around 20-25 pips from lows, though lacked any strong follow-through amid persistent Brexit-related uncertainties.
Technical levels to watch
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