POUND STRUGGLES TO RECAPTURE CRUCIAL $1.28 MARK; GBPINR WELL SUPPORTED AT 105.50

Published on Aug 02, 2023 12:21

Pound slipped back after briefly touching above $1.28 mark earlier today as dollar index reversed back above 102 mark. The dollar index that measures the greenback against a basket of currencies had retreated slightly below the crucial mark during early Asian trades after Fitch downgraded the United States government`s credit rating from AAA to AA+ late on Tuesday. However, improving data on US manufacturing and construction spending kept the greenback supported. The ISM said its manufacturing PMI crept up to 46.4 in July from 46.0 in June, but a reading below 50 continues to indicate contraction. Construction spending climbed by 0.5 percent in June although less than expected and lower than 1.1% jump last month. The number of job openings reported in the Job Openings and Labor Turnover Survey (JOLTS) stood at 9.58 million in June, suggesting labor market continues to stay tight although the figure came in following 9.82 million openings in May and slightly below the market expectation of 9.62 million. GBPUSD pair is currently seen trading at $1.2772, marginally lower on the day. On the NSE, GBPINR August futures are staying well supported at 105.50, up 0.2% on the day.