BRITISH POUND ATTEMPTS RECOVERY TOWARDS $1.26 MARK; BOE DECISION ON TAP

Published on May 03, 2024 14:52

The British pound is adding slight momentum against the dollar on Friday as the American currency is adding to weakness following a less hawkish FOMC this week. Investors now shift focus to April non-farm payrolls data later in the global day for further cues on Federal stance on interest rates. Currently, dollar index futures are quoting marginally down on the day at 105.09, tracking falling treasury yields with benchmark 10-year yields quoting at 4.5%. Easing geo political tensions in the Middle East are also reducing safe haven demand for the greenback that is seen willing to break below 105 mark. GBPUSD pair is currently quoting at $1.2564, up 0.18% on the day. BoE�s monetary policy decision slated next week is also keenly awaited for further guidance on direction. From the UK docket, the seasonally adjusted S&P Global UK Services PMI Business Activity Index was at 55.0 in April, up from 53.1 in March. The latest reading indicated the fastest rate of business activity growth since May 2023. On the NSE, GBPINR futures continue to trade with mild volumes and is quoting at 104.59, up marginally on the day.