Pandalela Pound Plunges, USD Strikes Ahead of New York Session - Kakiforex.com - Financial Market Media No. 1 in the World Pandalela Pound Plunges, USD Strikes Ahead of New York Session Pandalela Pound Plunges, USD Strikes Ahead of New York Session
InstaForex

July 2, 2021

Pandalela Pound Plunges, USD Strikes Ahead of New York Session

 The US dollar king surged higher as the market entered the European session, with investors gearing up to await the release of US manufacturing PMI data of the ISM survey tonight.


Against major competitors, the dollar index traded stronger at a three -month high of 92.50.


Manufacturing data readings are expected to hold above the 60 level, indicating rapid growth in the industrial sector. Investors will also see the employment component as an indicator of NFP data on Friday.



The euro moved weaker amid a strengthening greenback dollar although the final reading of the European Zone manufacturing PMI data was reported to be better than the initial reading recorded earlier in June.


Meanwhile, the pound fell lower below the 1.38000 price level against the US dollar, after Bank of England (BOE) Governor Andrew Bailey warned of an overreaction to rising inflation in the UK.


In a recent statement on Thursday, Bailey emphatically said that the recent rise in inflation was temporary in nature, and an earlier tightening of monetary policy would disrupt the recovery.


Moreover, the pound sterling was also squeezed by pressure from market concerns over the growing Covid-19 case in the UK would thwart the country’s reopening efforts.