US ISM Services PMI Miss Weighs on Dollar as GBP/USD Holds Above 1.32

Key Facts

The US Dollar remained under pressure following disappointing ISM Services PMI data, which suggested a cooling US economy. The GBP/USD pair maintained its strength above the 1.3200 level, bolstered further by a significant geopolitical development. Specifically, the announcement of a two-week ceasefire between the United States and Iran provided a boost to market sentiment, supporting the British Pound against the Greenback. This combination of weak economic data and easing geopolitical tensions led to a notable decline in the US Dollar Index (DXY). Investors are now weighing the impact of both the services sector slowdown and the ceasefire on the Federal Reserve's upcoming policy decisions. Consequently, the Pound has capitalized on the Dollar's broad-based weakness to sustain its recent gains.