GBP Faces Bearish Outlook, USD Stays Neutral Amid Economic Uncertainty

One Million Trade - 2024-03-01 09:30:00

Currency sentiment: GBP - Bearish, USD - Neutral

Reference time frame: Short-term

The recently released S&P Global/CIPS UK Manufacturing PMI for February came in at 47.5, slightly higher than the forecasted 47.1 and the previous data of 47.0. Despite the slight improvement, the figure still indicates a contraction in the UK manufacturing sector. This data suggests that the UK economy continues to face challenges, potentially leading to a negative impact on the value of the British Pound (GBP) in the short term.

On the other hand, the US Dollar (USD) remains neutral as various economic indicators point to a mixed economic situation in the US. The recent release of key data such as the Nonfarm Payrolls, Unemployment Rate, and GDP growth in the fourth quarter of 2019 show a relatively stable economy. However, indicators like Retail Sales and Durable Goods Orders have shown some weakness, suggesting a potential slowdown in consumer spending and business investment.

Overall, the GBP is likely to face downward pressure due to the weak manufacturing data, while the USD is expected to maintain its neutral stance in the short term. Traders and investors should closely monitor further economic releases to gauge the direction of these benchmark currencies.