The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a strong U.S. dollar supported by hawkish Federal Reserve expectations, the GBP/USD currency pair posted its worst monthly performance in a year during June, according to reports from Investing.com. The pair ended the month sharply lower, weighed down by weakening UK economic indicators and rising expectations of further U.S. rate hikes. The decline reflects persistent pressure on the British pound as domestic economic activity slows.
The move comes amid further signs of UK economic weakness, with the UK Services PMI contracting to 48.7 in June, per market data, below the 50.5 forecast. Additionally, the CBI Industrial Trends Orders index fell to -45, missing expectations of -35. On the other side, the dollar continues to find support from hawkish Fed expectations, reinforced by recent official comments signaling the possibility of more rate increases.
Sign in to access this content
Sign InTraders are now focusing on upcoming U.S. jobs data, which could determine the near-term direction of the dollar. Any further hawkish signals from Fed officials may add downside pressure on the pound. With few positive catalysts from the UK side, the GBP/USD pair remains vulnerable to additional selling.